Currency War: Who is playing whom?.

<P> 9 27, Brazilian Finance Minister Mantega the first to use the "international currency war" to describe the central bank interventions in the market, so that the "currency war" quickly became the focus of international public opinion. .In fact, before, in response to the threat of monetary policy in developed countries, Vietnam, Korea and Thailand have been actively taking action to curb the currency appreciation, more countries are moving the camera. .</ P> <P> devalue or not to devalue? .This is not a problem. .In the current international economic environment, the so-called "currency war" refers to the countries competing to keep their exchange rates, the depreciation of their currencies so that their export sectors gain competitive advantage, to protect or expand their related industries in the international market .share. .</ P> <P> levy of heavy taxes on foreign investors to buy securities </ P> <P> initial victory in Brazil </ P> <P> 10 4, the Brazilian government announced the increase of foreign investors to buy securities of the financial transaction tax in Brazil ., the tax rate from 2% to 4%, to reduce foreign capital inflows, to control excessive volatility in the foreign exchange market and the Brazilian currency, the real over-rise. .</ P> <P> 10 18, the Brazilian government once again raised the foreign investors to buy Brazilian securities, financial transactions tax. .October 22, the G20 finance ministers meeting was held in South Korea, but Mantega select the "absence", remain in the country personally took supervision of the market. .</ P> <P> the effectiveness of the early fighting. .Since October 13 has been started to accelerate depreciation of the real against the U.S. dollar, has depreciated by about 3% so far. .In October, the Brazilian real against the world's major currencies fell 0.5%. .This is the beginning of this year, the real exchange rate for the first time the world's major currencies fell. .</ P> <P> Mantega said publicly that Brazil plans to next month's G20 meeting was proposed by the International Monetary Fund (IMF) to create an index used to measure the exchange rate manipulation, the index used to determine which .their exchange rate artificially low state to expand exports. .Brazil's directed at Japan and South Korea, saying the country is taking steps to let its currency depreciate. .</ P> <P> cut interest rates, intervention in foreign exchange </ P> <P> Japan and South Korea currency depreciation rate of the different trigger "pinch frame" </ P> <P> this year's "October" holiday period, the Japanese suddenly cut interest rates, .designed to curb the yen appreciation and stimulate the economy. .</ P> <P> Bank of Japan monetary policy meeting next time will be held 11 days in advance, will be held on November 4, which also happens to be the end of Federal Reserve monetary policy meeting the day after. .Market participants speculated that this is the order of U.S. policy after the publication of a timely response to market fluctuations. .</ P> <P> Korea, although not openly introduced measures, but many traders that the foreign exchange market, the Korean government has frequently intervene in foreign exchange markets in recent months to prevent the won appreciation. .Japan expressed dissatisfaction. .October 13, Japanese Finance Minister Ye Tian Jiayan publicly questioned the practice of South Korea. .</ P> <P> against currency appreciation against the dollar, the same as Japan and South Korea's position, but the conflicts between the two currencies. .Since the beginning of this year, the yen appreciated against the dollar as high as 13%, while the won has appreciated against the dollar, only 4%. .This means that, in the won against the same period by nearly 8% depreciation of the yen, Korea's export sector will thus relative benefit. .</ P> <P> direct depreciation, buying dollars to exporters blood transfusion ... ... </ P> <P> Vietnam, Colombia, Thailand, the Philippines moves </ P> <P> last year, Vietnam and more .times lower official exchange rate devaluation in order to take the initiative to reduce the deficit and expand exports. .Last November, the Vietnamese Dong against the U.S. dollar cut the median trading range of 5.4% in February this year, and down 3.4%, down 2.1% in August again. .</ P> <P> Colombia Central Bank announced on September 15, buy at least $ 20,000,000 per day to prevent currency appreciation. .</ P> <P> Thai government on October 12 introduced measures to cope with the baht appreciation. .Thailand's foreign debt to buy and hold or sell the interest earned from bonds must pay a 15% withholding tax. .Joint state-owned banks to small and medium exporters to provide 50 billion baht and 2 million loan assistance. .</ P> <P> the Philippine central bank said on Oct. 20, will use a number other than than the interest rate policy tools, including allowing a small appreciation of the peso, increasing foreign exchange reserves, prepayment of debt and foreign exchange management environment sustained attention. .</ P> <P> Although some countries have not introduced measures, but issued a warning. .Malaysia's central bank said last week that the current appreciation of the currency reflects the economic fundamentals of the country, but if the disorder fluctuations in foreign exchange markets, the central bank stands ready to intervene. .</ P> <P> India Ministry of Finance said last week, there are no restrictions on foreign institutional investor inflows plan, but the Indian central bank concerned about the currency appreciation, if necessary, will intervene. .</ P> <P> ■ News Background </ P> <P> history of the "currency war" </ P> <P> "Great Depression" competitive devaluation after the </ P> <P> the end of World War I ., Europe has introduced the gold standard currencies of major countries, but the sterling exchange rate for gold higher, while the gold franc exchange rate significantly undervalued, leading to Britain's exports and overall economic competitiveness damage, severe trade deficit, large quantities of gold flows to France. .1929 "Great Depression" of the economic crisis, the UK and the U.S. economy has suffered heavy losses, but the French economy with lower exchange rate relatively stable. .Britain abandoned the gold standard in 1931 announced, a sharp depreciation of sterling, to save the British economy, but still adhere to the gold standard a heavy blow to France and the United States. .Immediately follow the United States, announced in 1933, abandoned the gold standard, the dollar depreciated, the U.S. economy regained its vitality, boosting the "New Deal" a success. .</ P> <P> "Plaza Agreement" hit Japan </ P> <P> 1985, the United States, Japan, Germany, France and Britain Plaza Hotel in New York held a meeting jointly with the Government of the five countries decided to intervene in currency markets to induce .the U.S. dollar against major currencies orderly depreciation of the exchange rate to address the huge U.S. trade deficit. .After the signing of the agreement less than 3 months, the dollar depreciated against the yen by about 20%. .After the signing of the agreement less than 3 years, the dollar depreciated by about 50% against the yen. .</ P> <P> "Plaza Accord" an end to Japan's aspirations to the dream of U.S. economic supremacy. .In 1985, Japan replaced the United States as the world's largest creditor nation, Japan-made products flooding the world. ."Plaza Accord" signed nearly five years, the Japanese stock at an annual rate of 30% rise in premium rate of 15% per year increase. .In 1989, the Japanese government began tightening monetary policy, stock and land prices fell nearly 50% of the short term, the banks form a large number of bad loans, the Japanese economy entered a decade-long recession. .</ P> <P> ■ News Links </ P> <P> currency war "symptoms" </ P> <P> fever </ P> <P> commodity prices have rocketed </ P> <P> China .Chinese Academy of Social Sciences of the economic evaluation of the financial director of the Center Liu Yuhui that the release of U.S. monetary policy are part of the money went to the commodities markets, some of the "hot money" went to emerging market countries in the form of asset markets. .It is not difficult to understand why the global economy has shown a strange phenomenon - the real economy overall malaise, but soaring commodity prices, especially in emerging market countries, dramatic soaring asset prices. .</ P> <P> in the past year, Thailand, the Philippines and Indonesia are close to the stock market rose 40%. .Thai stock market even beyond the international financial crisis of 2008 levels before reaching record highs. .</ P> <P> cold </ P> <P> emerging market export damaged </ P> <P> depreciation of the dollar emerging market currencies led to a passive appreciation, and appreciation of the export industries in these countries suffer. .</ P> <P> Association of the Philippines, statistics related industries, business process outsourcing industry was originally expected to be the country's largest export services sector, but the currency appreciation will make it hurt, some smaller outsourcing companies may go down the tubes. .</ P> <P> the Thai government's statistics show that the baht has appreciated by nearly two months, damaged the country's ceramic industry about 2 billion baht, while the ceramic industry of the market value of about 35 billion baht ., of which exports accounted for 20 billion baht. .This means the loss of two months of the year's total export value is equivalent to 1 / 10. .</ P>.