Asian central banks seen entering currency markets if Fed tapers off

High levels of debt in Asia mean the region's central banks are unlikely to raise rates to counteract currency depreciation. Photo: Reuters

Asia's central banks are likely to use heavy currency intervention as their weapon of choice in dealing with regional market turbulence but high debt levels will make them more reluctant than in the past to raise interest rates if tensions escalate.

Saturday, 15 June, 2013, 3:29am

G20 pledges against devaluation to help exporters

Members of the Group of 20 are unlikely to criticise Japan over its economic stimulus plan that has led to the yen weakening. Photo: EPA

The Group of 20 economies will affirm a commitment to avoid weakening their currencies to gain an advantage for their exports, according to a draft statement prepared for a meeting this week in Washington.

19 Apr 2013 - 4:06am

US calls on Japan not to drive yen down

The yen has fallen against all 16 of its most-traded counterparts since April 4. Photo: Reuters

Japan will be reminded of its pledge not to drive down the yen when Group of 20 finance chiefs meet this week for the first time since the world's third-largest economy intensified its campaign to defeat deflation.

16 Apr 2013 - 6:39am

A yen for Japan

Cherry blossom season is a popular time of year for Hongkongers to visit Japan, and the recent weakness of the country's currency has made it even more appealing. Photo: AFP

Macqueena Fan has been to Japan 15 times. She is a huge fan of the cuisine and every time she goes, she makes sure she indulges in local delicacies like sashimi and Sendai gyutan, a type of grilled ox-tongue. But her most recent trip over Easter was extra sweet.

15 Apr 2013 - 3:11am

Shinzo Abe's monetary stimulus risks inflaming regional tensions

Japanese Prime Minister Shinzo Abe. Photo: Xinhua

Reaction to the Japanese central bank's stunning monetary stimulus - doubling the size of money in circulation in two years - ranges from "brave" to "irresponsible". It is a bold attempt to jolt Japan out of two lost decades of stagnation and deflation. But it comes with risks that have aroused grave misgivings.

8 Apr 2013 - 2:04am

China's fury at Bank of Japan 'blackmail' makes zero sense

Back into line

According to the story on the front page of Saturday's South China Morning Post a host of mainland economic bigwigs led by former People's Bank of China monetary policy committee member Li Daokui are "livid" at what they see as the BoJ's efforts to devalue the yen.

8 Apr 2013 - 3:17am 4 comments

Japan stimulus will start currency war, say Chinese economists

The Bank of Japan will double its monetary base to 270 trillion yen (HK$22.1 trillion) by March 2015.

Many of China's top economists are livid at what they view as an effective currency devaluation by Japan and are calling on the People's Bank of China to retaliate by weakening the yuan to defend itself in what they see as a new currency war.

6 Apr 2013 - 5:47am

Chavez was a clown whose policies cost a ruinous price

Venezuelan President Hugo Chavez. Photo: Xinhua

From a distance of 10,000 miles, it was easy to see Hugo Chavez as nothing but a clown.

It was pretty easy from up close, too. When the newly installed Venezuelan president visited Hong Kong in October 1999, his staff presented reporters with portraits of El Presidente dressed in gilded military uniform, complete with scarlet sash of office.

7 Mar 2013 - 6:25am 3 comments

Danger signs for the global economy

Japanese Prime Minister Shinzo Abe. Photo: Xinhua

While people fret about a potential shooting war between three of the world's largest economies in the East China Sea, the real danger may be a currency war in which all three countries will be key players.

25 Feb 2013 - 2:52am

Make way, not war

Chinese central bank official Yi Gang says the quantitative easing in developed countries is creating uncertainty. Photo: Bloomberg

China's foreign-exchange regulator urged Group of 20 nations to improve collaboration to avoid any so-called currency wars while signalling he is comfortable with the value of the yuan.

29 Jan 2013 - 4:56am

Soros says euro here to stay but tense time ahead

George Soros, chairman of Soros Fund Management, says the acute phase of the euro's turmoil is over. Photo: Reuters

George Soros, one of the most outspoken critics of Germany's proposed austerity policies to solve the European debt crisis, said the euro was here to stay and would gain as other nations tried to devalue their currencies.

26 Jan 2013 - 4:36am

A lesson from the Nixon era for the world of today

It's 40 years since the beginning of the end for the Bretton Woods system, the agreement which fixed exchange rates between the world's major economies for a quarter of a century following the end of the second world war.

It might seem that the world has changed immeasurably over the intervening decades, and that the demise of Bretton Woods has little to teach us today.

5 Dec 2011 - 12:00am

The trouble with a heated Vietnam

It was back in 1994 that The Wall Street Journal first described Vietnam as 'the next hot thing'.

Judging by the way the country has been pitched to investors over the intervening years, it seems like Vietnam has been the next hot thing ever since, without ever quite graduating into the hot market of the current moment.

14 Feb 2011 - 12:00am

Peg still fits

This much is certain: one day Hong Kong's pegged dollar currency system will be abolished. The question is whether the benefits of sticking with the discipline outweigh the costs. Nothing could be worse than doggedly defending a policy that is ultimately doomed yet delivers untold economic pain.

26 Oct 2001 - 12:00am

SAR firms divided on devaluation

Hong Kong companies are divided on the question of mainland currency devaluation, with more than half expecting the mainland government to lower the yuan exchange rate next year.

However, 40 per cent believe Beijing will sit tight, preferring to focus on international matters.

8 Nov 1999 - 12:00am