- Analytics
- News and Tools
- Market News
- ADB President Asakawa: FX intervention among tools for emerging Asia
ADB President Asakawa: FX intervention among tools for emerging Asia
Capital controls and currency intervention are among tools emerging Asian policymakers can use if rapid U.S. interest rate hikes and a surging dollar risk triggering a debt crisis, Asian Development Bank (ADB) President Masatsugu Asakawa said on Friday, per Reuters.
Key quotes
With investment flows already volatile, Asian policymakers may also need to accelerate debate on strengthening the region's financial safety net, said Asakawa, who was formerly Japan's top currency diplomat.
While Asia is far from experiencing a crisis, many emerging nations are being forced to raise interest rates to stem capital outflows at the cost of slowing their economies, he said.
Unless they raise rates, Asian emerging economies would see their currencies depreciate and inflate the size of their huge debt borrowed in dollars, Asakawa said.
Some discomfort at the dollar's rise, or at least at the pace of its gains, is already clear in Asia.
Asian policymakers must also prepare for when volatile market moves destabilize regional economies, he added.
In the longer run, Asian emerging nations can make their economies less vulnerable to market swings by boosting tax revenues and diminishing their reliance on foreign borrowing, Asakawa said.
Also read: Ukraine headlines are mixed for the open
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
