Asian currencies, with the exception of the Chinese Yuan and
Japanese Yen, have notched stellar performances this year. The currencies of Thailand, Malaysia,
Singapore, South Korea, to name but a few, have experienced double-digit
increases (in percentage terms) against the Dollar. Worried about the impact of a rising currency
on export growth, Asian central banks are in the process of intervening in
forex markets. Singapore,
which uses currency manipulation as a form of monetary policy, believed to have
already made purchases of US government bonds in order to depress the Singapore
Dollar. South Korea, as well, has a history
of forex intervention, albeit unsuccessful intervention, and may issue currency
stabilization bonds before year-end. The
Gulf Daily News reports:
The Bank of Korea has repeatedly stated that it would
closely monitor currency markets, expressing concern about the level of the won
and money supply growth.
Read More: Asian banks calm currency surge
Original post by Jimmy Atkinson and software by Elliott Back
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