Yuan appreciation would benefit Baht, says Thailand

Last week, the Central Bank of Thailand implemented a series of draconian capital controls, designed to prevent foreign speculators from pouring funds into Thai capital markets and contributing to the appreciation of the Baht, which has been furious this year. Realizing this would ultimately be an inadequate means of

China to copy Singapore model of FX management

Having recently surpassed the $1 Trillion mark and showing no signs of abating, China’s swollen forex reserves are in dire need of some serious management. China’s de facto pegging of the Yuan to the USD has forced it to segregate its foreign exchange reserves rather than inject them back into its economy. Meanwhile, a 100 basis point decrease in US interest rates costs China as much as $10 Billion annually in lost returns. As

PetroDollar peg drives US trade deficit

While the Yuan is currently rising at an annualized rate of 7% against the USD, China continues to earn the brunt of the ire of US politicians, who point to China’s nearly $200 Billion current account surplus. Meanwhile, the oil-exporting nations of the world have largely escaped detection despite their collective trade surplus of $500 Billion, $300 Billion of which can be attributed to Middle Eastern countries. The countries of Gulf Co-operation Council, or GCC (Saudi Arabia,

Commentary: The Inevitable Decline of the USD

For years, economists have been arguing that the USD was vastly overvalued, and a fundamental correction was in order. Last month, their claims were born out, as the bottom fell out beneath the USD, and the currency declined by over 10% against most of the world’s major currencies, including the British Pound and Euro. But, was this only the beginning and is there more to come?

Commentary: The Inevitable Decline of the USD

For years, economists have been arguing that the USD was vastly overvalued, and a fundamental correction was in order. Last month, their claims were born out, as the bottom fell out beneath the USD, and the currency declined by over 10% against most of the world’s major currencies, including the British Pound and Euro. But, was this only the beginning and is there more to come?

Economist Urges Asia to accept fall of USD

Last week, a well-respected Japanese economist publicly urged Asian nations to take joint action in accepting the fall of the USD against their respective currencies. He encouraged them to fight the temptation to intervene in forex markets, because such could potentially cause massive instability. Most Asian nations would lose on two fronts of the USD continued to decline; their economies would suffer due to less

China to better manage forex reserves

As China’s FX reserves soar past the $1 Trillion mark, the country may begin taking the management of these reserves a little more seriously. In the past, China merely issued Yuan to those in possession of foreign currency, and then proceeded to remove the currency from circulation and stash it in risk-free investments overseas. Now, however, China’s reserves are so gargantuan that it risks losing out on billions in potential