Sunday, February 13, 2011

Raising the deposit reserve ratio to prevent the real reasons behind the entry of hot money

 Central bank raised the deposit reserve ratio by 1 percentage point of the message out, the analysis is mainly that the central bank move is to curb money growth and inflation pressures. And I think that raised the deposit reserve ratio is the real reason behind the prevention of international hot money China's trouble.
we see: the adjustment of the adjustment of the past is the difference between: 1. In the past more than the central bank last month after the release of CPI data, are financial institutions increased temporarily.
the face of CPI data will be a our attention: the Vietnamese stock market or crash. As of June 4 closing, Vietnam decline index has reached 58%, ranking first in the world, Vietnamese dong will be the first domino fell .11 a year ago in July, with the an attack on the baht of international hot money, a large-scale financial crisis began to spread in Asia; 11 years later, the East Asian financial regulatory authorities to alert countries to find that higher oil and commodity prices soaring, their monetary system is also face enormous risks.
whirlpool in the currency turmoil in Vietnam, more people are buying gold with a large number of Vietnamese Dong. From January this year, the Vietnam-month increase on the CPI index as high as 12.6%, 15.7% in February , is as high as 25.2% in May. Currently the overseas market is expected to VND depreciation rate in the coming year will reach nearly 40%. At the same time, inflows of foreign capital in a large number of Vietnamese outside the stock market withdrawal. out of the financial turmoil and inflation crisis in Vietnam spread fear, 5, Indonesia and the Philippines also raised the benchmark interest rate by 25 basis points.
China will continue to face the problem of capital inflows to accelerate China's foreign exchange reserve has reached 1.6821 trillion U.S. dollars, of which a considerable part of hot money of unknown origin, this year, China's central bank stepped in through the issuance of a large number of hedge fund inflows, but limited success, only to continue to raise the deposit reserve ratio to increase the intensity. 

No comments:

Post a Comment