According to the New York Times website on October 27, governments around the world are trying to stabilize their currencies and protect their economies from the impact of the Federal Reserve's rapid interest rate hikes.

According to the US website of " New York Times " on October 27, governments around the world are trying to stabilize their currencies and protect their economies from the impact of the Federal Reserve's rapid rate hike. These efforts highlight the interrelated nature of the global financial system and its vulnerability.

reported that Fed rate hike increased the returns of investors to buy US assets, attracting funds into the United States, and strengthening the US dollar. As a result, the weakening of currencies in other countries has disturbed the markets of some of the world's largest economies.

Local time, August 9, 2022, Washington, DC, USA, exterior view of the Federal Reserve Building. (Visual China)

In September this year, the Japanese government spent nearly $20 billion to buy its own currency to prevent the rapid depreciation of the yen - the first such intervention by the Japanese government since 1998. Analysts said the action reduced some volatility in the market, but its impact was short-lived, with the yen continuing to fall.

South Korea, Philippines , Vietnam, Malaysia and Thailand all disclosed that they had conducted monetary intervention.

The RBI has been selling its U.S. dollar reserves and buying back the rupee since March. In the year to August, India bought back Rs 43 billion. The rupee has fallen by about 10% against the dollar this year. " global economy is at the center of a new storm," said Brad Seize, a senior fellow at the American Diplomacy Society and a former Biden administration adviser, said that most countries that intervene in trying to prevent their currencies from falling by just barely reducing the rate of decline. "The pressure from the Fed rate hike is already hard to stop," Seitzer said.

Although many countries have been using their cash reserves to intervene, some have been selling U.S. government bonds. China, Japan and India have sold U.S. Treasury bonds in recent weeks to help support their currencies. (Compiled/Tu Qi)

Source: Reference Message Network