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

    2017欧美狠狠色| 精品噜噜噜噜久久久久久久久试看| 久久综合色天天久久综合图片| 韩国女主播一区二区三区| 久久看人人爽人人| 99re热视频精品| 一区二区三区91| 日韩午夜在线播放| 国产91丝袜在线播放| 亚洲靠逼com| 91精品国产福利在线观看 | 91丨九色porny丨蝌蚪| 夜色激情一区二区| 精品日韩欧美在线| 9l国产精品久久久久麻豆| 亚洲一区二区美女| www激情久久| 色视频欧美一区二区三区| 日本 国产 欧美色综合| 国产女人18毛片水真多成人如厕| 色视频一区二区| 久久er精品视频| 亚洲免费观看视频| 日韩精品自拍偷拍| 91在线无精精品入口| 日本va欧美va欧美va精品| 国产精品久久久久久亚洲伦| 在线观看91精品国产麻豆| 豆国产96在线|亚洲| 亚洲1区2区3区视频| 国产欧美精品在线观看| 欧美三级视频在线观看| 国产成a人无v码亚洲福利| 亚洲国产日韩精品| 欧美极品另类videosde| 欧美高清www午色夜在线视频| 丁香婷婷综合色啪| 免费看日韩a级影片| 亚洲日本在线观看| 精品久久久久久综合日本欧美| av电影在线观看一区| 麻豆精品国产传媒mv男同| 1024国产精品| 精品国产凹凸成av人网站| 欧美无砖专区一中文字| 国产精品综合一区二区| 日韩国产一二三区| 日韩美女视频19| 久久精品在这里| 制服丝袜中文字幕一区| 一本到三区不卡视频| 国产麻豆精品95视频| 日韩成人一区二区三区在线观看| 亚洲欧美日韩国产综合| 国产亚洲一区二区三区在线观看| 欧美日韩精品一区二区天天拍小说 | 欧美变态tickle挠乳网站| 在线免费亚洲电影| 成人精品亚洲人成在线| 蜜桃av一区二区三区| 亚洲国产美女搞黄色| 国产精品久久久久久久久免费桃花 | 欧美军同video69gay| 91视频免费播放| 国产999精品久久久久久绿帽| 免费精品99久久国产综合精品| 樱花影视一区二区| 国产精品高潮呻吟久久| 国产亚洲一区二区在线观看| 日韩三级伦理片妻子的秘密按摩| 欧美中文字幕一区二区三区| av影院午夜一区| 国产成人精品亚洲日本在线桃色 | 高清久久久久久| 国产99精品国产| 国产一二精品视频| 美女脱光内衣内裤视频久久网站| 婷婷国产在线综合| 亚洲精品乱码久久久久久日本蜜臀| 中文字幕成人网| 国产视频在线观看一区二区三区| 精品欧美久久久| 欧美大白屁股肥臀xxxxxx| 欧美精品日韩综合在线| 欧美午夜一区二区| 欧美午夜不卡视频| 欧美综合久久久| 在线免费观看日本一区| 色屁屁一区二区| 99久久免费视频.com| av中文字幕一区| 91视频精品在这里| 色婷婷狠狠综合| 日本道精品一区二区三区| 日本久久电影网| 欧美在线影院一区二区| 欧美综合一区二区| 欧美日韩精品欧美日韩精品一综合| 欧美视频一区二区在线观看| 在线观看亚洲a| 欧美日韩在线观看一区二区 | 亚洲成人免费看| 丝袜亚洲另类欧美| 日韩成人av影视| 老司机精品视频导航| 麻豆传媒一区二区三区| 狠狠色狠狠色合久久伊人| 国产在线精品不卡| 国产成人午夜视频| 99久久99久久综合| 99久久精品情趣| 欧美性生活大片视频| 欧美精品v国产精品v日韩精品| 7777精品伊人久久久大香线蕉经典版下载 | 亚洲精品大片www| 亚洲国产乱码最新视频| 日本麻豆一区二区三区视频| 精品午夜久久福利影院| 国产丶欧美丶日本不卡视频| 99视频国产精品| 欧美午夜影院一区| 日韩欧美国产三级| 国产亚洲美州欧州综合国| 最新日韩av在线| 亚洲国产sm捆绑调教视频| 蜜桃视频第一区免费观看| 国产盗摄视频一区二区三区| 91在线小视频| 欧美日韩免费观看一区二区三区| 91精品国产一区二区人妖| 久久免费的精品国产v∧| ...中文天堂在线一区| 亚洲v日本v欧美v久久精品| 老色鬼精品视频在线观看播放| 国产成人精品综合在线观看| 色综合 综合色| 欧美一级高清大全免费观看| 国产欧美日韩在线| 亚洲黄色性网站| 另类小说色综合网站| 成人天堂资源www在线| 欧美日韩三级一区二区| 久久久美女毛片| 亚洲男人电影天堂| 久久av资源网| 91免费版在线| 欧美一区二区久久久| 国产精品免费视频一区| 亚洲第一福利一区| 国产精品18久久久久久vr| 欧美伊人久久大香线蕉综合69| 日韩午夜在线观看| 综合欧美一区二区三区| 91影视在线播放| 欧美日高清视频| 国产精品视频一二三| 偷拍自拍另类欧美| 成人av在线一区二区| 欧美一区二区三区在线观看视频 | 粉嫩蜜臀av国产精品网站| 欧美三级视频在线播放| 国产偷国产偷精品高清尤物| 亚洲无线码一区二区三区| 国产成人一区在线| 91精品国产91久久久久久一区二区| 国产精品国产三级国产普通话蜜臀| 丝瓜av网站精品一区二区| fc2成人免费人成在线观看播放| 欧美一区欧美二区| 亚洲老司机在线| 国产精品12区| 欧美一级视频精品观看| 亚洲免费观看视频| 国产精品一二三四区| 91精品在线一区二区| 亚洲色图视频网| 国产精品一二三四区| 91精品久久久久久久99蜜桃| 亚洲人成小说网站色在线| 国产一区二三区| 欧美日韩国产一二三| 中文字幕一区二区三区视频| 九色综合狠狠综合久久| 欧美日韩激情一区二区三区| 国产精品伦理在线| 韩国成人在线视频| 欧美日韩国产精品成人| 亚洲免费观看视频| 成人激情黄色小说| 亚洲精品一区二区三区99| 午夜久久电影网| 色狠狠av一区二区三区| 亚洲国产高清aⅴ视频| 老司机免费视频一区二区| 欧美麻豆精品久久久久久| 亚洲影院久久精品| 91在线精品秘密一区二区| 国产欧美在线观看一区| 黄色日韩网站视频| 日韩欧美在线观看一区二区三区|