Intervention in the foreign exchange markets in emerging economies "powerless"

South Africa Finance Minister Pravin · Gordan recently said, the Government of South Africa alone by unilateral action, insufficient to curb currency appreciation of South Africa RAND, only a global solution to effectively address the current emerging economies are facing money problems. While South Africa Finance Director-Gan Maniago, although South Africa is not like other emerging countries have adequate foreign exchange reserves on the foreign exchange market intervention, but this does not mean that South Africa would do nothing.

From developed economies the impact Super relaxed monetary policy, the Rand exchange rate against the dollar since the beginning of 2009 is about 39% of cumulative appreciation. 14, RAND dollar reached 6.76: 1 level, two and a half years. As at 18-20, Beijing time, RAND dollar reported 6.87: 1.

At the same time, foreign exchange market intervention Brazil faces continued inflows of foreign investment in the "troubles". According to reports, pengboshe 18, Brazil will be sold in international markets Brazil currency real international bonds, to relieve the international portion of the assets of the country, and this is Brazil over the past three years from the first sale of such bonds.

South Africa "purse not drum"

Gordan in South Africa media interview, warned that the world economy is at a critical moment, once the "currency war" broke out, will have on South Africa's economic. immeasurable South Africa should be combined with other emerging market countries, the study on global solutions to address the immediate crisis. Previously, Goldin and South Africa's Central Bank Governor of Marcus repeatedly emphasized, as developed economies continue to cut interest rates, international speculative capital flows interest rates are relatively high in emerging economies, including RAND, emerging economies continued appreciation of the currency.

Coombe Maniago said that many countries now global currency devaluation of competition have been formed, which in the final analysis, is a "national purse" competition, but South Africa's "purse" and not drum. He also said, "we will continue to focus on multilateral consultations, but we also need to consider other measures can be implemented. "He pointed out that Brazil on the taxation of foreign investment inflows also enough to suppress Brazil currency real fast rally, this implies that South Africa does not exclude taking similar measures on the Rand exchange rate intervention.

Latest data show that South Africa at the end of September the foreign exchange reserves, representing $ 360.25 8 month 354.64 billion slightly increased. Standard Chartered Bank Research Department in the African region, said that regardless of whether South Africa's Central Bank has accelerated the pace of its announced reserves of foreign exchange reserves data is a bad news because RAND continued appreciation, this allows the original monetary policy is weak South Africa more easily in the international currency war at a disadvantage. Marcus also pointed out that the same other emerging market countries have very different, South Africa's own savings, rely on the capital account of the inflow to cover the deficit of current account. Therefore, South Africa has not taken on capital inflows radical measures such as taxation. The Government should seek other ways rather than through intervention currency exchange to promote economic and employment growth.

Brazil assets purchased by coax

According to the latest data show pengboshe, since Brazil Government announced on 4 October on the country's local currency bonds of foreign investors the implementation rate doubled, real guagouxing (real-linked) international bonds were foreign capital buying, 2016 due over the same period in the international bond and bond yields poor in China has been extended to July high of 372 basis points, namely 3.72%. A huge market demand that Brazil Government considering selling real international bonds, Brazil's Central Bank under the jurisdiction of the State Treasury Secretary augstine has 14, said that the country will before the end of the year sale real international bonds.

BNP Paribas Latin American policy analyst Diego · Donadio said, this is Brazil's Government to sell bonds a good time, because for overseas investors, bond rates doubled so that investment is costly Brazil, China and Brazil assets and attractive. Citigroup Latin American currency and interest rate analyst Ramachandran said that investors demand global bonds, if Brazil will issue international bonds, market appetite will open.

Prior to this, the international impact of huge hot money inflow, Brazil's Central Bank has approved the purchase of US dollars and sell real ways, directly into the city on real appreciation trend. Meanwhile, Brazil Ministry of Finance also improves the bonds of the foreign investors and to contain the actual rates of inflow of foreign capital. But these measures are difficult to douse international investors on share Brazil's economic growth cake enthusiasm. Under Brazil's Central Bank published figures for the month of September this year, a total of nearly 17 million into Brazil, Brazil's Central Bank is the 1982 since the statistics, the highest monthly inflow. In this regard, Brazil's President Lula has stressed that Brazil does not welcome those short-term international capital arbitrage.