As the United States continues to strengthen the dominance of the dollar by raising interest rates, this has brought huge shocks and shocks to the global economy. In this process, the currencies of Asian countries have suffered heavy losses and are facing the dilemma of "harvesting" the dollar. This time, however, instead of repeating the mistakes of the past, Asian countries collectively fought back, eventually forcing the Fed to make a 180-degree U-turn. The trend of this Asian currency defense war not only reflects the rising power of Asia's emerging economies, but also indicates that the hegemony of the US dollar is being challenged like never before.
First, the dollar storm has swept through Asia, and crises are everywhere
The US dollar attacked Asian currencies strongly
It can be said that the United States is trying to "harvest" the emerging economies of Asia through the rising value of the dollar. This has not only affected the economic development of these countries, but also further exacerbated the fragmentation and uncertainty of the global economy.
U.S. intends to recreate the "dollar tidal wave"
For the United States, the rising dollar is undoubtedly a double-edged sword. On the one hand, it helps the United States harvest wealth from around the world and strengthen its own economic power. On the other hand, an excessively appreciative dollar could also lead to a decline in the competitiveness of U.S. exports and sluggish economic growth.
Therefore, the United States does not hesitate to deliberately create a "dollar tide" in an attempt to achieve another "harvest" against other countries. Over the past few decades, this set of tactics has allowed the United States to reap a steady stream of benefits from the world. However, this time, the US government's calculations may be in vain.
Asian countries face a severe test
For Asian countries, this "exchange rate war" dominated by the US dollar is undoubtedly a severe test. On the one hand, they must find ways to cope with the shock of the continued appreciation of the dollar and maintain the stability of their own economies. On the other hand, they also need to be wary of attempts by the United States to plunder again through the "dollar tide".
It can be said that Asian countries are facing unprecedented pressure. If you repeat the mistakes of the past again and fall into the "harvest" trap of the dollar, it will inevitably cause serious damage to the national economy. Therefore, Asian countries must take more active and resolute measures to jointly address this strategic challenge.
Second, Asian countries have collectively fought back
In the face of the raging storm of the dollar, Asian countries did not passively accept it, but collectively launched an active counterattack. This not only indicates the growing strength of Asia's emerging economies, but also indicates that the global economic landscape is undergoing profound changes.
The Bank of Japan intervened decisively
Japan was the first country to take action in this "exchange rate war." When the yen exchange rate once broke through the 160 mark, the Bank of Japan decisively intervened and tried to recover the yen's decline by selling dollars and buying yen.
According to public market data, the Bank of Japan has carried out more than 9 trillion yen of foreign exchange intervention operations in a short period of time. This move not only effectively stabilized the yen exchange rate, but also clearly warned the United States that Asian countries will no longer tolerate the "harvesting" of the dollar.
South Korea also joined the huddle in the fightback
This move is undoubtedly a resounding slap in the face to the United States. As the "little brother" of the United States in Asia, South Korea no longer easily succumbs to the pressure of the dollar, but takes decisive action to fight back together with Japan and other countries. This fully shows that Asian countries are gradually shaking off the shackles of the US dollar and seeking a more independent development path.
Establish a regional financial safety net
In addition to the intervention by Japan and South Korea, Asian countries have also taken a deeper level of cooperation. South Korea, China and Japan have reached a consensus on May 3 to work with ASEAN members to establish a regional financial safety net to deal with a possible future financial crisis, Yonhap News Agency reported.
This means that countries across Asia have joined forces to build a strong line of defense in the financial sector against the US dollar. This will not only enhance the financial resilience of Asian countries, but will also greatly weaken the ability of the United States to exert influence through the dollar.
It can be said that this collective action of Asian countries indicates that they are shaking off the shackles of the US dollar and jointly seeking a more independent development path. This "Asian currency war" is undoubtedly a critical moment, which will profoundly affect the future direction of the global economic pattern.
Third, the Federal Reserve was forced to make emergency policy adjustments
As Asian countries continue to fight back, the Fed has to make a 180-degree U-turn. The sharp turn in attitude from the previous aggressive interest rate hike to the current consideration of interest rate cuts reflects the helplessness and passivity of the United States in this exchange rate game.
Asia has teamed up to strike back against the U.S. abacus
Over the past few decades, the United States has been taking advantage of the hegemony of the dollar to reap global wealth by creating a "dollar tidal wave".