Recently, the global financial market seems to have exploded, even more violently than a volcanic eruption! Why?
Because as soon as Janet Yellen, the financial boss of the United States, made a move, it was like throwing a giant bomb in the global currency market, and the result was that the whole market trembled.
Not only did she say that she would suppress the yuan, but she also said that she would not hesitate to pay a higher price.
Anyone who hears this must be shocked! That's going to make a big deal!
The madness of global bears
Like a storm sweeping the earth, the bears in the global foreign exchange market are like a surging tide, and the short-selling action of the RMB is even more violent and abnormal.
They seemed to have found a way to break the game, desperately shorting the RMB, and for a while the market situation suddenly changed, and the atmosphere was so tense that it seemed to be able to cut open.
Under the tremendous pressure of this bear, the exchange rate of the RMB against the US dollar once fell to 7.35, which is a new earthquake in recent years! This can startle everyone, as if the yuan is about to fall into the abyss.
But just when everyone was apprehensive and quiet, the People's Bank of China showed excellent response ability and never showed weakness!
They are like a steady helmsman, firmly at the helm, and through a series of strong measures, they have succeeded in keeping the renminbi relatively stable.
The PBOC's move is brilliant, like a choreographed drama, with every move full of dramatic tension.
They not only intervened in the exchange rate in a targeted manner to balance market fluctuations, but also stabilized interest rate policy and increased foreign exchange reserves to withstand risks.
More importantly, they strictly supervised capital outflows, strengthened capital management, prevented large-scale capital flight, and protected the stability of the renminbi.
It was all like an uphill battle, and the PBOC not only held its ground, but also sent a strong signal to the market: the renminbi is not so easy to bully!
This scene makes people see that behind the Central Bank of China is a strong team, a solid backing, and a stabilizer of the national economy.
The plight of the yen
In this "currency storm", the yen can be said to be synonymous with tragedy.
On the one hand, the monetary policy of the United States continues to raise interest rates, resulting in the strong rise of the dollar; On the other hand, the Bank of Japan has been hesitant and has not responded in a timely and effective manner.
It's like a brutal contest, with the yen caught in the middle, barely able to save itself.
First of all, the US monetary policy has been soaring, raising interest rates constantly, making the dollar stronger.
This caused investors to sell the yen and flock to the dollar, causing the yen to lose ground against the dollar and eventually fall below 160, a new 30-year low.
It was like a marathon, with the dollar like a galloping horse and the yen falling behind and eventually losing.
And the Bank of Japan seems to be in a state of indecision. They have been on the sidelines, delaying effective measures.
It's like a warrior who hesitates on the battlefield and makes a move, and in the end he can only be beaten passively.
Their counterattack clearly did not have the desired effect, with Japanese government bond yields continuing to rise, international investors accelerating their exit from the Japanese bond market, and market panic intensifying.
The yen's fiasco also serves as a stark reminder that indecision is often fatal in financial markets.
The Bank of Japan's delay not only caused the market to lose confidence, but also led to the collapse of the yen.
It's like a thrilling battle, and victory often goes to those who act decisively and have the courage to decide.
Strategic adjustments in China and Japan
In the face of such a difficult situation, both China and Japan are intensively adjusting their strategies, as if discussing countermeasures in an urgent war meeting.
First of all, China's decision to accelerate the internationalization of the renminbi is no small matter! It's like they're changing roles on stage at an accelerated pace, transforming from participants to dominants.
By pushing countries along the "Belt and Road" to sign currency swap agreements with China and expand the influence of the renminbi in the world, this is like a diplomatic war, using the power of the renminbi to send a signal to the world: "We are coming, we are strong!" ”
At the same time, in order to enhance the resilience of the domestic economy, they have increased their support for high-tech, manufacturing and emerging industries, and reduced their dependence on foreign trade, which is like doing an internal integration to make their economy stronger and not affected by the outside world.
Japan, on the other hand, has opted to change its ultra-loose monetary policy, which is like turning the bow of the ship in an attempt to bring it back to stability.
They gradually loosened yield curve controls and allowed interest rates to float freely as a way to stabilize the yen.
This decision was like a gamble, and they made a big bet in the hope of stabilizing the currency by adjusting their policies.
At the same time, they have also actively introduced more attractive foreign investment policies in an attempt to attract more foreign capital inflows and inject a shot in the arm for the Japanese economy.
It's like a game of co-opting allies, and Japan is going all out to get more support.
In this currency war, both China and Japan are doing everything in their power for their future.
They may face different challenges, but they all have the same goal: to stabilize the economy and defend the currency.
And in this battle, who will have the last laugh, remains to be tested by time.
Epilogue:
In this never-ending currency war, every action is like a move on a chessboard that can trigger a chain reaction.
Who will have the last laugh in this drama, and who will be the biggest loser? Only time may be able to answer this mystery.
Every country is fighting for its own interests, but it will take time to reveal who the fruits of victory will belong.
It's like a tense and exciting competition, destined to go through a fierce competition before you can finally find out.
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