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In this volatile global economic environment, an unprecedented battle for currency defense is quietly unfolding in the Asian region.
Japan, once an economic giant, is facing unprecedented challenges.
The continued depreciation of the yen has attracted widespread attention from the international community.
From the beginning of 2024 to date, the yen has fallen sharply against the dollar, depreciating by an astonishing amount, even depreciating by more than 14% in just a few months.
Faced with the weight of the economy, the Japanese government has taken a major step.
That is a massive sell-off of US Treasuries in an attempt to save the falling yen.
At the same time, currencies across Asia, not just Japan, are facing a similar dilemma.
The continuous depreciation of many currencies has cast a shadow over the economic development of the region. But what are the considerations behind the actions and strategies of various countries?
In the sell-off of US bonds taken by the Japanese government, relevant data shows that Japan has sold more than $60 billion in US Treasury bonds in just a few days.
This decision is not only a direct response to the sharp depreciation of the yen, but also a release of long-standing economic pressures.
Since 2021, the yen has depreciated by nearly 60% against the dollar.
The blow to the Japanese economy at this continued rate of depreciation has been enormous, affecting everyone from exporters to ordinary consumers.
Japan's actions, although self-protection measures under extreme conditions, have sparked global concern and ripple effects.
Other Asian countries, such as South Korea, Indonesia, and Thailand, are facing similar economic and monetary pressures.
The currencies of these countries have also experienced rapid depreciation, which not only affects the stability of the domestic economy, but also increases the cost of living for the people.
Against this background, Asian countries began to look for more active strategies to deal with the strength of the dollar and the depreciation of their currencies.
China has played a leading role in this currency war. As an important pole of the Asian economy, China has adopted a series of fiscal and monetary policies.
Trying to stabilize the renminbi exchange rate and reduce dependence on the dollar by increasing foreign exchange reserves, among other measures.
In addition, China is calling on more Asian countries on the international stage to join this "currency war".
The purpose of such collective action is not only to protect their economies from external pressures, but also to try to counter the global hegemony of the dollar through solidarity.
This move by Asian countries, especially Japan's large-scale sell-off of US bonds, is actually a counterattack to the long-standing financial strategy of the United States.
Currency depreciation in Japan and other Asian countries.
Fundamentally, it is caused by the continuous issuance of government bonds and the implementation of high interest rates in order to maintain its economic growth and global financial advantage.
This "blood-sucking" economic strategy of the United States has long exerted tremendous pressure on the global economy, especially on the Asian economy.
The background and prospects for this round of currency defense are complex.
On the one hand, Japan and other Asian countries need to protect their economies from external shocks.
On the other hand, they also need to reconsider and adjust their financial relationship with the United States to find a more balanced and sustainable economic development model.
In doing so, the policy choices and international cooperation of these countries will profoundly affect the future direction of the global economy.
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