Asian central banks move to curb rapid currency declines
“Central banks across Asia are moving to defend their currencies from recent declines as escalating trade tensions between the U.S. and China weigh down exports and economic growth. Officials in Beijing, Seoul and Jakarta were among those taking steps on Wednesday to arrest weakness that’s affected most key currencies in Asia this month. The yen, a traditional haven, is the main exception to the trend.”
USAGOLD note: This is one of the quiet crises developing around the globe – the collateral effects of the strong dollar. If debt is denominated in dollars, the debtor country pays dearly when those debts come due when the dollar is rising. One cannot help but be reminded of the Asian financial crisis of the late 1990s – a problem that began with depreciating currencies and capital flight that nearly rolled over to a full-out global financial contagion.