久久久无码人妻精品无码_6080YYY午夜理论片中无码_性无码专区_无码人妻品一区二区三区精99

USEUROPEAFRICAASIA 中文雙語Fran?ais
China
Home / China / View

Shaky markets need confident BRICS

By Zhou Feng | China Daily | Updated: 2013-09-13 10:11
Shaky markets need confident BRICS

Emerging nations must reduce dependence on US dollar and work to build a cohesive monetary force

When the US Federal Reserve launched its second round of quantitative easing in 2010 it was widely criticized by emerging economies such as China, India and Brazil. These nations felt that by irresponsibly boosting global liquidity, the US was trying to solve its economic problems by transferring them to others.

Interestingly enough, when the US announced a "tapering" of its QE policy a few months ago, these same countries once again started complaining. This time, they said the US actions would cause a massive capital outflow from the emerging markets, drain liquidity and harm investor confidence.

On the surface, it may appear strange that the emerging markets are so critical of the US actions. It seems that they are unhappy no matter whether the US launches or halts QE.

This sort of contradictory thinking is, however, well justified, because they are not complaining about the US launching or quitting QE. What they are actually upset about is the global aftermath caused by the sudden changes in US monetary policy.

This also provides new clues to a scenario in which the US continues to dominate the global financial system with the help of its currency as the global major settlement and reserve unit.

Emerging economies account for more than 75 percent of global foreign exchange reserves, with China holding one-third of the total. Though emerging economies are creditors of developed nations, they still have very little say in global financial matters. In other words, they still have to take cues from US monetary policies to design their monetary policies.

Historically, when the US started to massively tighten its home liquidity, developing countries felt the pinch and sometimes slipped into financial crises.

The Latin American crisis in the 1980s, the Mexican crisis in 1994, the Asian Financial Crisis in 1997 and the Argentina financial meltdown in 2000 were all closely connected with monetary policy changes in the US.

History looks set to repeat itself.

With the US signaling its intention to end bond purchases, emerging markets saw massive capital outflows, asset deflation and currency depreciation.

India is one of the emerging economies that has suffered the most with the rupee falling by about 18 percent against the US dollar since May and becoming the worst performing Asian currency so far this year.

Since the second quarter, most of the other emerging economies have also slowed down significantly. For example, the Indonesian economy grew 5.81 percent in the second quarter, the fourth consecutive quarter of a slowdown.

Capital shortage has also become a major problem in most of the emerging economies.

Since mid-May, when the US announced the QE exit policy, the capital markets in emerging economies have seen value erosion of over $1.5 trillion, reflecting the huge capital outflow. China, known for its massive money pool and a high economic growth rate, saw its foreign exchange purchases decline in June and July, an indication that the Asian nation is facing capital outflow pressures.

Although the yuan continued to appreciate against the greenback, the pace is apparently slowing. A disparity between onshore and offshore yuan prices also sheds light on the downward pressure on the Chinese currency.

All these suggest that emerging markets, as a whole, are heading for a difficult time, if not a crisis.

Therefore, it is not a surprise to see the BRICS nations - Brazil, Russia, India, China and South Africa - getting jittery over US ending its QE program.

It is against this backdrop that representatives of the world's emerging markets stepped up their efforts to set up a fighting fund, or what they call the Contingent Agreement Fund, during the G20 Leaders Summit in St Petersburg, Russia, this month.

The $100 billion fund, which has got assurances from the five BRICS members, is in the final stages of being established and is expected to be a firewall and an alternative to the International Monetary Fund.

The agreement to set up the BRICS fund was signed in March, and a final agreement is expected during the BRICS summit in Brazil next year.

But BRICS leaders' high-profile reaffirmation of the commitment to, and their announcement of the details of, the fund are a clear demonstration that they are eager to restore confidence in the shaky emerging markets.

The move came in time and will prove effective.

As the current crisis the emerging economies are facing is technically a liquidity difficulty, the $100 billion reserve can more than help in restoring market confidence.

Indeed, the current international capital migration from developing markets to developed ones is mostly based on speculation and expectation. If emerging markets can withstand the initial pains and prove their resilience, capital will flow back. In this sense, the size of the reserve is big enough to cope with a financial crisis so long as it does not evolve into a regional one like the Asian Financial Crisis in 1997.

But the significance of the BRICS fund does not stop at this.

The fund is supposed to supplement, if not replace, the IMF, where the US wields veto power. It reflects emerging economies' efforts to challenge the world financial system dominated by the US.

On that path, there are a few more things BRICS nations can consider pressing ahead with.

First, the use of local currencies must be promoted to reduce reliance on the US dollar.

China's wish to push for the internationalization of its currency is determined. The yuan is now among the world's top 10 most-traded currencies in the past decade. At the same time, it is also important for the BRICS nations to become a collective monetary force.

This goal is expected to be gained through measures like earmarking a part of the $100 billion Contingent Agreement Fund in local currencies, expanding bilateral currency swap deals, extending swap deals from a bilateral level to a multilateral level, and pushing for BRICS currencies' role in the IMF's special drawing rights.

Second, the BRICS nations must promote financial cooperation with other emerging economies.

Past experience has shown that countries are more aware of the need for financial coordination and reforms when a crisis strikes.

For example, the Chiang Mai Initiative, a multilateral currency swap arrangement grouping of the Association of Southeast Asian Nations, China, Japan and South Korea, was initiated during the vortex of the Asian Financial Crisis and finally took shape in 2010.

The current crisis haunting emerging economies offers a golden opportunity to expand regional and even global coordination among them. BRICS, as the major representative of emerging markets, could do its bit by including other nations. The ASEAN, prompted by the US move to end QE, may also extend support.

Third, the current difficulty offers a chance for BRICS to improve their financial systems and help cut their leveraging levels.

Ample global money supplies under the US QE greatly boosted leveraging levels in emerging economies, increased investor appetite for risks and dampened their incentive to reform the financial systems.

It is time to curb asset bubbles and dependence on credit growth to increase the sustainability of their economies.

Compared with developed economies, BRICS nations' financial systems still have restrictions on aspects such as interest rates, foreign exchange rates, capital controls and investment curbs.

It is also time for BRICS nations to work closer to marketization of their financial systems. This is an important move if BRICS really wants to break the US monopoly of the global financial regime.

After all, we cannot expect a country with many restrictions on its financial system to shape the global order, just as no one will be convinced that the yuan can successfully become a global currency when it is not fully convertible.

The author is a financial analyst in Shanghai. The views do not necessarily reflect those of China Daily.

 

Editor's picks
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
久久久无码人妻精品无码_6080YYY午夜理论片中无码_性无码专区_无码人妻品一区二区三区精99

    欧美精品一区二区三区免费播放| 欧美 日韩 国产精品| 大陆极品少妇内射aaaaaa| 欧美 日韩 亚洲 一区| www.久久av.com| 奇米影视亚洲色图| 国产不卡的av| 成人在线观看a| 日本免费a视频| 久久久福利影院| 黄色片视频在线免费观看| 裸体裸乳免费看| 亚洲一区在线不卡| 黄色一级视频在线播放| 一级黄色录像免费看| www.99在线| 久久国产成人精品国产成人亚洲| 欧美 另类 交| 久久国产精品国产精品| 激情五月宗合网| 国产欧美123| 亚洲综合20p| 亚洲一区二区三区四区五区xx| 五月丁香综合缴情六月小说| 午夜福利123| 邪恶网站在线观看| 黄色片视频在线播放| 国产1区2区3区中文字幕| 黄色片免费网址| 手机版av在线| 亚洲一级片免费| 国产精品wwwww| 欧美a在线视频| 丰满少妇久久久| 欧洲精品在线播放| 免费极品av一视觉盛宴| 亚洲国产午夜精品| 黄色小视频免费网站| 天天影视综合色| 五月婷婷狠狠操| 别急慢慢来1978如如2| 99久久久无码国产精品6| 亚洲一区二区三区av无码| 精品久久久无码人妻字幂| mm131午夜| 天堂在线精品视频| 国产精品嫩草影视| 黄瓜视频免费观看在线观看www | 日本高清视频免费在线观看| 青娱乐国产精品视频| 不用播放器的免费av| 精品亚洲一区二区三区四区| 精品少妇无遮挡毛片| 日av中文字幕| 九色porny91| 奇米影视四色在线| 国产探花在线看| 91大神免费观看| 欧美另类videosbestsex日本| 手机成人av在线| 国产91在线亚洲| 免费av手机在线观看| 日韩中文字幕在线视频观看| av之家在线观看| 成人免费无码av| 国内外成人免费在线视频| 国产福利在线免费| 天堂av免费看| 日韩精品一区在线视频| 自慰无码一区二区三区| 成年人免费在线播放| 亚洲黄色av网址| www.色就是色.com| 高清无码一区二区在线观看吞精| 国产原创中文在线观看| 爆乳熟妇一区二区三区霸乳| 一级黄色录像在线观看| 欧美日韩亚洲国产成人| 国产freexxxx性播放麻豆| 大陆极品少妇内射aaaaa| 熟女人妇 成熟妇女系列视频| 无需播放器的av| 老司机午夜网站| 播放灌醉水嫩大学生国内精品| 国产熟人av一二三区| 亚洲欧美日韩一二三区| 国产天堂视频在线观看| 日韩亚洲在线视频| 在线播放 亚洲| 国产原创popny丨九色 | 欧美a级免费视频| 欧美国产激情视频| 日韩av.com| 国产妇女馒头高清泬20p多| 美女网站视频黄色| 2021狠狠干| 东京热加勒比无码少妇| 国产精品嫩草影院8vv8| 国产免费裸体视频| 在线观看国产中文字幕| 国产精品视频网站在线观看| 欧美丰满熟妇xxxxx| 四虎影院一区二区| 日韩精品一区二区三区色欲av| 制服丝袜中文字幕第一页 | 玩弄japan白嫩少妇hd| 在线一区二区不卡| 久久这里只有精品23| 中文字幕国产免费| 亚洲不卡中文字幕无码| 中文字幕在线视频精品| 国产男女在线观看| 亚洲国产一二三精品无码| 国产又大又黄又粗的视频| 日韩精品免费一区| 岛国av免费在线| 欧美色图另类小说| 老司机激情视频| а 天堂 在线| 黑人糟蹋人妻hd中文字幕| 在线成人免费av| 成人精品视频一区二区| 可以在线看黄的网站| 欧美xxxxx在线视频| 日本一二三区视频在线| 久久成人免费观看| 三年中国中文在线观看免费播放| 国产第一页视频| 800av在线免费观看| 国产亚洲视频一区| caoporn超碰97| 国产黄页在线观看| 亚洲黄色网址在线观看| 中文字幕第38页| 精品免费国产一区二区| 国产精品裸体瑜伽视频| 国产免费内射又粗又爽密桃视频 | 欧美日韩亚洲国产成人| 亚洲第一中文av| av7777777| 青青青青在线视频| 99re99热| 日本免费在线视频观看| 91小视频网站| 黄色高清无遮挡| 久久精品午夜福利| 成人综合视频在线| 黄色动漫网站入口| 国产www免费| 日本大胆人体视频| 国产一二三四五| av动漫免费观看| 99精品视频国产| 欧美大片久久久| 亚洲精品视频三区| www.污网站| 久久出品必属精品| 五月天色婷婷综合| 黄色网址在线免费看| 麻豆中文字幕在线观看| 色黄视频免费看| www.-级毛片线天内射视视| 亚洲一二三不卡| 黄色免费高清视频| 成人手机在线播放| 成人午夜视频免费观看| 精品人妻大屁股白浆无码| www.好吊操| 美女日批免费视频| 激情六月丁香婷婷| 日韩精品你懂的| www.超碰97.com| 特黄特黄一级片| 800av在线免费观看| 免费 成 人 黄 色| 免费在线观看的毛片| 在线观看av网页| 国产精品无码乱伦| 女人被男人躁得好爽免费视频| 婷婷五月综合缴情在线视频| 两根大肉大捧一进一出好爽视频| 免费黄色特级片| 国产又黄又猛的视频| 天天干天天操天天干天天操| 日本天堂免费a| 国产免费成人在线| 国产精品区在线| 警花观音坐莲激情销魂小说| 久久99久久99精品| 激情婷婷综合网| 91香蕉视频在线观看视频| 996这里只有精品| 精品久久久久av| 超碰91在线播放| 精品视频在线观看一区| 91网址在线播放| 永久免费看av| av免费中文字幕| 9999在线观看| 欧美丰满熟妇bbbbbb百度|