Global Financial Situation Is Really Changing

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Global financial situation is really changing, less than two months ago, also continued to see the dollar depreciate afternoon, forcing emerging markets and developed countries began to try to stop the currency rose to defend the competitiveness of exports, especially in the Swiss central bank unexpectedly cut, set the resistance rise with the Swiss franc to the euro, the Bank of Japan intervention approach strong appreciation of the yen, the most cited note; Unexpectedly, began in September, the scene changing, European debt crisis intensified, risk aversion, foreign large-scale withdrawal of Asian emerging markets, hedge funds return to the dollar weakness against a strong rebound in major currencies, especially the devaluation of Asian currencies fast back, as if entering a new phase of global competitive currency devaluation war.
Over the past two weeks, investors actively unwinding long positions in emerging market currencies, market liquidity is very strong Asian currencies has fallen to 20 six-month lows, in order to avoid massive capital outflow in 2008 happen again, South Korea, Indonesia and the Philippines and ...
... other central banks sell dollars to support the exchange rate approach, excessive influx of hot money had worried Asian governments, and now because of the risk-averse investor withdrawal and instead began to support the currency exchange rate.
Yesterday morning, Wachovia's $ 400 billion potential "distort the operation" program, can not meet market expectations, and warned the U.S. economy coupled with significant downside risks, so that non-US currencies yesterday wiped out, plunge in Asian currencies is straight down, record lows for the year, leading heavy devaluation of the won more than 2.6%, NT all the way down, not only broke a 30-yuan mark, the more advantage of the opportunity to exchange rate depreciated by 4.22 breath angle, showing amazing strength.
Favorable currency appreciation, imports, exports, devaluation is a help, when a similar economic structure and the constitution of the country face the same external factors, that will show the so-called currency war, Taiwan and South Korea for example. As guardian of export competitiveness, Taiwan, South Korea seems intent on the central bank let the recent exchange rate depreciation, but the heavy devaluation of the currency adverse financial stability, the Bank has two operating strategy is clear that the "loose the belt tight," look at the brake when necessary step approach, prevent currency collapse disorder.
Competitive devaluation of war at this stage, the NT dollar depreciated rate far less than South Korea, but as chairman of the Council for Economic Planning and Analysis Christina Liu 21, from the International Monetary Fund (IMF) revised downward just global economic growth rate for Taiwan, South Korea by the United States debt crisis in Europe most affected, but exports to South Korea to an annual rate in August remained as high as 27.1%, Taiwan 7.2% only, leading indicator of export orders growth in August and further to 5.26%, as both fell to 6.4% annual growth rate of imports, Taiwan's investment and consumer spending also reflects the strength of domestic demand is slowing, while Taiwan's exports and imports both fell, these indicators revealed that the warning should not simply the exchange rate problem.
In fact, the currency devaluation, and achieved export competitiveness, the practice is only a temporary solution. Asian currencies depreciated often go up together, think through the exchange rate depreciation is not easy to achieve export competitiveness Moreover, if the exchange rate depreciate too far, but it will hurt imports, worth the candle.
That is, or today's trend of Asian currency devaluation appear together, countries will Xu balance their economic reality, the invisible hand to carry out varying degrees of adjustment operations, which are to compare the extent of the devaluation alone can not explain.
To mainland China, for example, in recent months, strong exports, high inflation and international pressure and other factors, makes the Chinese government to allow faster appreciation rate, now weakened global economic recovery of these factors, especially the European sovereign debt crisis urgency , outside attention has been transferred from the exchange rate issue, China has huge foreign exchange reserves and even the savior of the debt crisis of identity occurs, temporarily reduced the pressure of RMB appreciation, RMB August rally has subsided, almost no appreciation of the first half of September .
Surface, the yuan depreciated in recent atmosphere of competing currency is relatively stable, but if compared with other Asian currencies, the appreciation of the actual remains, whether to continue the trend of the gap, you have to look at mainland China for export, domestic demand and inflation data developed.
"Currency war" argument is that Brazil's Finance Minister Meng Dijia first proposed last September, when he claimed that Japan, South Korea, Taiwan and other countries around the world competing to improve the competitiveness of derogatory currency, is already an international currency war broke out. A few days ago, the market came the mainland Chinese banks (Bank of China) with several European banks to suspend foreign exchange swaps, the expansion of the European financial institutions bear the liquidity pressure, a new phase of the currency war, will not only emerging markets In response to the weak dollar and competitive devaluation of national currency, to put it more seriously, countries compete with money as a "balance of terror" means to maintain its economic, financial structure, the situation will become frequent, there will be more expected emergence of different interventions, the International Monetary converting the market calm.Genuine UGG Boots has gained great popularity and more and more girsl like to wear Ugg Boots.Twin-face Grade A sheepskin with raw edges, suede heel guards and nylon binding.It's one of our tallest boots and looks great all the way up or cuffed down.We have differents kinds of Classic Tall Uggs and you can choose one you like best.Your friends and family will love them very much.The Boots On Sale combines a classic prep school pattern and cozy sweater knit for the coolest, comfiest, casual look.Easy to match with your clothes,you will stand out of the crowd in ugg boots.