Tag Archives: Inflation

Japan’s $1.2 trillion in foreign exchange reserves is not enough to support the yen.

 

Despite Japan’s foreign exchange reserves,
which accumulated at a faster pace of growth at the time of Japan’s intervention
to save the yen during the Asian financial crisis,
this does not contribute significantly to supporting the yen,
but awaits a move on the US side.
Japan’s foreign exchange reserves reached $1.17 trillion
by the end of August this year.

the detail from Evest

 

topic’s

Tokyo intervenes in the currency

The global economy is under the tusks of inflation!

 

 

 

 

 

Trade Now

 

 

 

 

 

 

Tokyo intervenes in the currency

It is expected this month that Tokyo is seeking to interfere
in its local currency as a result of the significant decline it witnessed
after reaching its lowest levels in 24 years.
This came against the US dollar.
The desire of monetary policy makers in Japan continues to keep
interest rates at very low levels,
which is contrary to the desire of the US Federal Reserve,
which always supports raising interest rates continuously to face high inflation.

 

The pressure of the US dollar

The dollar witnessed a significant rise during the last period against most currencies,
but the biggest impact was on the weak Japanese yen,
as it recorded a decline below 4.5 yen to the dollar in just two days of the previous week,
and always keeps the option of intervention from senior officials on the table,
and the yen recorded an increase at the beginning of Tuesday’s session,
but it quickly completed the decline again with its prices currently
stabilizing near the levels of 143.30 dollars.

 

 

American support

History has shown that the intervention of the United States contributes
significantly to influencing the trajectory of a currency,
and this is what happened in the 1998 crisis,
where Japan was forced to overlap with about 10%
of its foreign currency reserves estimated at about 21 billion dollars
in order to support the yen alone at the time.

 

Japan currently needs to intervene unilaterally as well,
given its commitment to the agreements signed with the G7
that allow markets to set currency prices,
and at the same time the United States justified providing any assistance

in this regard because it wants to tighten any possible interventions
in the forex markets last week,
which is contrary to what happened in the 1998 crisis,
and what is different in the current situation is that
the reason for the weakness of the yen is mainly due
to internal reasons to a large extent.

 

artical name Japan’s $1.2 trillion in foreign exchange

 

 

 

 

 

Trade Now

 

 

 

 

 

The global economy is under the tusks of inflation!

Is there hope to get out of these difficult conditions in the global economy?

As for the current events in the world and the current economic situation,
the situation remains at the table of politicians
who are rushing to hold matters and control inflation,
which has become a nightmare of politicians.
Despite their attempts to resolve the crisis,
economists see that all attempts are short-term housing
that does not give signals of progress in medium and
long-term economic growth.

 

 

First of all,

if we want to happen, it is worth mentioning Europe
and the eurozone in particular,
its attempt to fight inflation and
solve the energy crisis was summarized in something
like quantitative tightening, but on the ground,
the European Central Bank revealed on Thursday the GDP,
which is likely to rise by 9.9% in 2020,
an expectation that I think is more optimistic than all expectations.
Tree Bloomberg Economics stated that progress will not exceed 10.4%
painfully for several reasons, the most important of which is the energy crisis,
but nothing stops the central bank from taking the decision to raise interest rates again.

 

Let’s track Thursday’s movement of 75 Almost a basis point
where European Central Bank President Christine Lagarde said
inflation is still very high despite all attempts ..!

 

Japan’s $1.2 trillion in foreign exchange reserves is not enough to support the yen.

 

Despite Japan’s foreign exchange reserves,

 

 

 

 

 

Trade Now

 

 

 

 

 

 

It was worth talking about Southeast Asian countries
because we found that trade was the lifeline for China,
which makes us look at its neighboring countries such as Japan and Korea.
We will find the fog dimming the scene and that
it suffers like the rest of the neighboring
countries from the economic crisis and recession.
Surveys of purchasing managers in South Korea and
Taiwan showed that manufacturing has

 

 

Although Chinese export growth slowed sharply in August,
imports barely remained on the right side of zero,
while Beijing’s strict strategy on Covid bears some blame for the outcome.
Which led the authorities to say that the Buti trend is a fair price to pay.

 

 

It is also worth noting that the Chinese economy pulled out of decline in 2015,
which brought the contraction to its course
with a difficult public confrontation followed by a very strong year.

 

 

Returning to the euro zone,

Federal Reserve Chairman Jerome Powell noted
his adherence to his hardline plan,
speaking of his need to act openly and forcefully,
opening relatively new horizons,
but stressed expectations of raising the level of 75 basis points
for the third time in a row next week.

 

 

 

One of the most mature views on crisis response was Brenard,
the most mature-minded member of the Federal Reserve’s leadership team.
Borrowing costs should become restrictive while risk recognition
will become more bilateral in the future and is expected to try to steer
the central bank toward a greater estimate of what is happening
outside the United States, she said.

 

 

As for the opinions of economists and bank presidents and governors,
the most solidarity is that the best way to protect the economy
is to contain the rise in prices in the medium and long term.

The insistence on raising interest rates by major steps drags us into crises
in more difficult conditions than the seventies,
when borrowing costs were eased early,
causing inflation to rise very significantly.
No matter how slow growth falters at the moment,
it is better than years of inflation.

 

 

Is there a way out of these dark conditions sweeping the global economy
and affecting all industrial and commercial sectors
and exacerbating the labor crisis as well.
Is this a tax that must be paid for the childish actions
of officials over the old days?

 

 

artical name Japan’s $1.2 trillion in foreign exchange