{"id":11023,"date":"2015-08-14T08:49:33","date_gmt":"2015-08-14T13:49:33","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11023"},"modified":"2015-08-14T08:49:33","modified_gmt":"2015-08-14T13:49:33","slug":"malaysia-meltdown-asian-currency-crisis-2-0-sends-ringgit-stocks-bonds-crashing","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11023","title":{"rendered":"Malaysia Meltdown: Asian Currency Crisis 2.0 Sends Ringgit, Stocks, Bonds Crashing"},"content":{"rendered":"

Malaysia Meltdown: Asian Currency Crisis 2.0 Sends Ringgit, Stocks, Bonds Crashing<\/a><\/h3>\n

When China went the \u201cnuclear\u201d (to quote SocGen) devaluation route earlier this week in a last ditch effort to rescue its export-driven economy from the perils of an increasingly painful dollar peg, everyone knew things were about to get a whole lot worse for an EM currency basket that was already reeling from plunging commodity prices, slumping Chinese demand, and the threat of an imminent Fed hike.<\/p>\n

Sure enough, EM currencies from Brazil to South Korea plunged, and monetary authorities – unsure whether to play down the move or cry foul – scrambled to respond.<\/p>\n

With some Asian currencies already falling to levels last seen 17 years ago, some analysts fear that an Asian Currency Crisis 2.0 may be just around the corner.<\/p>\n

That rather dire prediction may have been validated on Friday when Malaysia\u2019s ringgit registered its largest one-day loss in almost two decades.<\/strong><\/p>\n

As\u00a0FT notes<\/a>, \u201csentiment towards Malaysia has been damped by a range of factors including sharp falls in global energy prices since the end of June. Malaysia is a major exporter of both oil and natural gas, with crude accounting for almost a third of government revenue.\u201d The central bank meanwhile, “has opted to step back from intervening in the market in response to the falling renminbi, unleashing pent-up downward pressure on the ringgit.\u201d That, apparently, marks a notable change in policy. \u201cThe most immediate challenge is the limited scope of Malaysia\u2019s central bank to step in,\u201d\u00a0WSJ says<\/a>, adding that\u00a0\u201cfor weeks, it tried to stem the currency\u2019s slide, digging into its foreign-exchange reserves to prop up the ringgit and warning banks from aggressively trading against its currency.”<\/strong><\/p>\n

Surveying the damage, here’s the one-day:<\/p>\n

\"\"<\/p>\n

And the one week:<\/p>\n

\"\"<\/p>\n

And the one month:<\/p>\n

\"\"<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Malaysia Meltdown: Asian Currency Crisis 2.0 Sends Ringgit, Stocks, Bonds Crashing When China went the \u201cnuclear\u201d (to quote SocGen) devaluation route earlier this week in a last ditch effort to rescue its export-driven economy from the perils of an increasingly painful dollar peg, everyone knew things were about to get a whole lot worse for […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[8084,90,130,4333,1099,6654,6910,554,675,6770,1031,4318],"class_list":["post-11023","post","type-post","status-publish","format-standard","hentry","category-economics","tag-asian-currency-crisis","tag-brazil","tag-china","tag-crude","tag-currency-devaluation","tag-lehman","tag-meltdown","tag-natural-gas","tag-renminbi","tag-socgen","tag-yuan","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11023"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11023\/revisions"}],"predecessor-version":[{"id":11024,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11023\/revisions\/11024"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}