Emerging Asian Currencies Slipped And Wait-And-See The Fed Meeting

Emerging Asian currencies mostly slipped on Friday, and weekly declines expanded as the dollar rose.

Although retail sales data in the US are weak, investors are still cautious about meeting the Fed policy meeting next week.

The US dollar / Thai baht closed slightly down 0.09%, at 32.84, the last trading day was 32.81; the US dollar / Philippines Peso was flat, at 44.25, the last trading day was 44.25, the US dollar / Indonesian shield closed down slightly 0.08%, 13190, the last trading day was 13180, and the US dollar / Malaysia ringgit closed slightly down 0.07%, 3.6930, the last trading day ended at 3.6905.

The Korean won will hit the biggest weekly decline in three and a half years, and the decline will be ahead of this week's regional currency.

South Korea's central bank unexpectedly lowered its target rate on Thursday.

Regional currencies rose slightly earlier on Friday. Data show that after the US retail sales unexpectedly fell in February, investors made a profit on the US dollar.

The data will cool the Fed's expectation of raising interest rates in June.

However, the Federal Reserve will launch a two day meeting next Tuesday. In a wait-and-see atmosphere of the market, emerging Asian currencies will not be favored by investors.

"The key is

Whether to give up the word "patience".

If we give up, Asian currencies will be hit again, "said Yuna Park, an exchange and bond analyst at Eastern securities.

The Fed is expected to abandon the phrase "patience" in the forward-looking guidelines, implying that it will soon be raised.

。

In contrast, quite a few

The authorities have relaxed policies to cope with slower economic growth and deflationary pressures.

This week the Central Bank of Korea and Thailand both cut interest rates unexpectedly.

The won fell 2.7% against the US dollar this week, the biggest weekly decline since September 2011.

The baht has fallen 1.3% this week, the biggest weekly decline since August.

The Indonesian rupee depreciated by 2.1% this week due to foreign capital selling its stocks and bonds.

Malaysia's ringgit fell 1.2%, dragged down by the decline in oil prices, which is worrying that low oil prices may damage the current account surplus and increase the fiscal deficit.

The India rupee fell 0.8% this week, because the state-owned banks bought the US dollar for the central bank.

Related links:

The so-called deposit insurance system is that banks pay premiums to the deposit insurance institutions in a certain proportion. Once a business crisis or bankruptcy occurs, the deposit insurance institution can provide financial assistance to them or pay some or all of their deposits to their depositors.

Ye Qing said that in the past, the way the government paid for banks was only invisible deposit insurance. The deposit insurance system that will be introduced in the future is to make it explicit, which is conducive to protecting the interests of depositors and avoiding the occurrence of runs.

In fact, the deposit insurance system has been brewing for more than 20 years in our country.

In December last year, the Legislative Affairs Office of the State Council announced the deposit insurance Ordinance (Draft).

According to the draft, deposit insurance is subject to a limit payment. The maximum repayment limit is RMB 500 thousand yuan, that is, the sum of the sum of the principal and interest of the insured deposit account of the same depositor in the same insurance institution is within the maximum repayment limit, and the bank pays the full amount. The portion exceeding the maximum repayment limit is compensated according to the law in the liquidation property of the insurance institution.

In an interview with Nandu reporters, Zeng said that the introduction of the deposit insurance system is the basis for the marketization of interest rates and the batch of private banks, which has changed the situation that deposits were guaranteed by the state in the past.

Guo Tianyong, director of the China banking research center of Central University of Finance and Economics, said that when there was no deposit insurance system, the public felt that banks were "getting bigger and bigger insurance", and deposits were gathering to large banks.

The central bank officials pointed out that the deposit insurance system can greatly enhance the credit and competitiveness of small and medium-sized banks.

Deposit insurance will create a fair competition environment for small and medium-sized banks, and promote the same competition and balanced development among all kinds of banking financial institutions.