Xie Jinhe, president of Caixin Media, wrote on Facebook that "emerging market mines explode one by one", pointed out that the appreciation of the dollar has caused a butterfly effect, and emerging economies with a fragile economic temperament will most likely be sent to intensive care to form a new round. Economic storm.
Xie Jinhe analyzed that since the beginning of this year the US dollar has continued to rise. A lot of money transferred to emerging markets has been converted into US dollars, which has increased the pressure on currency devaluation. If the tax structure is not good and the external debt is high, it is easy to form an economic storm.
Xie Jinhe said that US President Trump announced that it has doubled the rate on aluminum and steel in Turkey. The Turkish lira is submerged and fell under the 7th against the US dollar. Then the precarious Venezuela carried the currency change and the legal currency Bolivar in (Bolivar) immediately dropped 5 zeros, corresponding to the original 100,000 yuan coins, only 1 cent per minute, the Argentine gods yesterday, the Argentine peso has more than 7% in 1st place and this year pushes 42%, causing the local population to panic.
Xie Jinhe stressed that countries with impatient exchange rates are not only Turkey, Venezuela, Argentina, but also South Africa.The South African authorities must implement land reforms.Troef also said that economic sanctions will be imposed.The South African currency fell from 11,502贬 to 15.312. He warned that the strong American dollar triggered a series of chain effects and that other currencies including the Russian ruble, the Indian rupee and the Indonesian rupiah also fell.
Xie Jinhe recalled that, now that the trade war between the United States and the United States is tight, the crisis in emerging markets is taking shape and I am afraid to further detonate the global turmoil in the financial markets.
(China Times Newsletter)