The collapse of the yen's exchange rate caused global shocks
Recently, the yen has plummeted against the dollar, and the exchange rate has plummeted below 158, hitting a new 34-year low, and this "exchange rate shock" has awakened global markets. Behind the sharp fluctuations of the yen is actually a relatively contest between the global economic powers in order to redraw the pattern of interests.
The US dollar kidnaps the yen and works together to "cut leeks"
The trigger for the collapse of the yen was the temporary adjustment of monetary policy in the United States. The US dollar index has risen sharply due to the Federal Reserve's repeated interest rate hikes, and the yen has fallen sharply in response. Originally, the Bank of Japan intended to follow the Fed's actions and fight side by side with the "big brother of the dollar", but it was inadvertently taken as a "prey".
This is a brilliant "first move" strategy: the U.S. government cleverly manipulates exchange rate movements, thereby forcing Japan's exports to become less competitive internationally, which in turn boosts the global market share of U.S. domestic goods. This trick of "joining hands to cut leeks" is obviously carefully planned by the United States in order to further consolidate its economic and financial hegemony.
The world is taking advantage of the fire to rob Japan's dilemma
Even if it suffered, Japan was helpless. Once the central bank follows the Fed's approach to raising interest rates, domestic inflation will spread rapidly, people's quality of life will plummet, and they may fall into a typical "shrinking diet" situation, but if they do not follow their own opinions, the yen will continue to suffer heavy losses, the export advantage will be lost, and the domestic manufacturing industry will also collapse under the impact of low exchange rates.
In this foreign exchange market conflict, in addition to the local financial institutions such as Mrs. Watanabe, who did not dare to act rashly, "betrayed the country" and frantically shorted the yen under the temptation of huge profits, causing the people to suffer, other speculative funds from all over the world also flocked to push the yen into the abyss. If it loses again and again, Japan's position as the world's third-largest economy may be lost.
China's great fate
However, for China, which has a prosperous national fortune and a heavy responsibility, it may be able to profit from the smoke of this financial battle. In recent years, the pace of RMB internationalization has been steady and strong, and the scale of foreign exchange reserves is abundant, which is enough to turn the tide and tide over the crisis in this round of exchange rate games.
Fortunately, during the period of the soaring yen, we temporarily enjoyed the great benefits of cheap and high-quality Japanese products, and the variety of Japanese products was dazzling and value-for-money, which really gave our wallets a respite. But we must also be vigilant: if the yen moves further away from rational expectations, it is very likely to trigger a new round of financial turmoil in Asia, which will affect everyone's food, clothing, housing and transportation.
In general, this round of yen exchange rate shocks reflects the drastic reshaping of the global economic map, and the interest game between major countries will further heat up. We should look for opportunities for development in the crisis, and at the same time, we should be prepared for the "storm" that may come.
Stick to the bottom line thinking and look at the big changes rationally
In any case, in these turbulent times, we must stick to rational thinking, keep a clear head, and not be carried away by unnecessary pessimism or excessive optimism. Rather than pursuing one's own selfish interests, we should uphold the concept of the overall situation and always pay attention to the fundamental interests of the country and the nation. Only by always maintaining strategic determination, diligence and pragmatism can we permanently thrive in the turbulent tide and finally reap the fruits of victory.
Welcome to discuss in the comment area, your likes, forwards and followers are the biggest motivation for our creation~