Asia’s Currency Market Shakeup

The economies of Asian nations are growing, but currency coordination throughout the region could provide greater certainty and boost. China is not alone in manipulating currency values, points out Philip Bowring for the Asia Sentinel. With China imposing strict controls on yuan bonds that could raise the value of renminbi, Japan, South Korea, Taiwan, have little choice but to try suppressing the value of their currencies to boost export markets, refusing to give China any big advantage. “Currency rates may also have begun to damage some manufacturing industries already under pressure from Chinese imports,” writes Bowring. “Currency strength has done little to spur investment, though it has boosted stock and property asset values.” As a result of large international trade, Asian and other currencies already have many intricate connections – some less obvious than others. With mounting internal and external pressures, currency coordination and discipline are becoming difficult to maintain. – YaleGlobal