The International Monetary Fund said the currencies of China, Malaysia, and Thailand are undervalued relative to the economies’ medium-term fundamentals. The IMF said that the countries should focus on fiscal policy to support growth.
According to the IMF, while foreign exchange movements had been consistent with demand rebalancing since the global financial crisis, gains in currencies of nations with external surpluses had halted over the past eight months.
The countries have been warned that accumulation of international reserves was contributing to global imbalances and other weaknesses, and that these were likely to remain above desirable levels unless something is done to combat this. This could include changes in Thailand’s Currency Act.
The IMF also noted that while inflation rates in emerging Asia have been low or falling, in China and India credit has expanded rapidly, and in Indonesia and to some extent Malaysia, credit growth is still quick.
In addition, China, Malaysia and Thailand’s currencies are undervalued relative to the countries’ medium-term fundamentals.
Related articles
Currency Wars
Currency Wars II
Use of Gold as Currency in Thailand
| Employment Law in Thailand A Thailand work permit allows non-nationals the opportunity to legally build a career in the Kingdom that is rewarding and fulfilling. |
{ 2 comments… read them below or add one }
Good post. Short, sweet, and to the point. When it comes to topics like money, economy etc. etc. it can get boring but it’s still important to be informed about. This is why the blog was invented.
Good posting. Keep it up.