Strong weak dollar yuan, Asian "emerging market" monetary policy "dilemma"

[뉴욕=뉴스핌] Hwang Sook-hye, a Kang dollar correspondent, has emerged as the biggest risk factor for emerging Asian currencies.

Investors are not uncommon in the sharp fall of the yuan against emerging markets and the US dollar

. ] The Chinese Yuan [사진=로이터 뉴스핌]

It is pointed out that Asian currencies including the Indian rupee have fallen due to the collapse of the Argentine peso and the Turkish lira.

Investor attention is focused on the central bank of the major Asian countries. While the People's Bank of China accepts the devaluation of the yuan and provides large-scale liquidity of 502 billion yuan to the Chinese financial market on March 23, it is estimated that policymakers will be limited to bear the fall of the yuan against their currency. [19659002

Edwin Gutierrez, Emerging Markets Analyst at Aberdeen Standard Investments, said in an interview with Bloomberg: "The Chinese yuan rose 0.12% to 6.7593 yuan per dollar," L & # 39; weakening of the yuan is a big negative for badets of Asian emerging economies, "he warned," if the dollar / yuan exchange rate approaches 7 yuan, we will sell the panic against the currencies of the emerging markets and other badets. "

It is important to note that the yuan is not only the dollar, In the basket, Asia accounted for 41%.

This contrasts strongly with the 5% jump in the index during the 12-month period ending in May.

The fall of the yuan in emerging markets, which compete with China in the markets of China. export, threatens global economic fundamentals as well as corporate profits.

Emerging markets suffer from double pressure due to the relative depreciation of the yuan as well as the depreciation of the currency due to the depreciation of the yuan.

Bank of Montreal Exchange Strategist Stephen Galo,

Some investors believe that local central banks will not have the same political stance as the People's Bank of China.

The monetary policy of the US Federal Reserve (Fed)

The investment banking industry (IB) should experience a turnaround as long as trade friction between the US and the US China will not be resolved. It's hard to wait. At least, we believe that emerging economies in Asia will have little leeway to raise interest rates until the first half of next year.

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