The weak US dollar, accelerating inflation and the prospect of higher interest rates have pushed Southeast Asian currencies to their highest levels in years, with some hitting levels not seen since the Asian Financial Crisis wrought economic destruction across the region 13 years ago.
Things in most Southeast Asian economies are looking good compared with the fiscal outlook facing the United States, Europe and Japan. Soft US jobs data, a relapse in Greece and the aftermath of Japan’s catastrophic earthquake are just the latest signals of severe international economic malaise there.
With a little help from China’s strengthening yuan, which makes goods out of Southeast Asia cheaper for Chinese buyers, regional currencies are expected to continue gaining over the next 12 months.
As always, currency fluctuations produce mixed results in a well-rounded economy. In Southeast Asia, prices on foreign goods should fall as purchasing power rises in tandem with the local unit, while the cost of locally made products can rise with inflation feeding into the system.
Luke Hunt is a South-east Asia correspondent for The Diplomat and has worked in journalism for more than 25 years. He has served as bureau chief for Agence France-Presse in Cambodia and in Afghanistan during the Taliban occupation where he was commended by the United Nations for the ‘best and most insightful’ coverage of the Afghan civil war.
Global fashion e-tailer Shein launches new hub in Singapore
How Businesses in Singapore can Reduce Overhead Costs During the Pandemic
The government is expected to draw on S$53.7 billion (US$40 billion) from its reserves for this year and an additional S24 billion (US$17.8 billion) over the next three years to assist local companies transition into a post-pandemic business environment.
Subscribe via Email
Asia’s slow rate of vaccination is a thorn in the region’s economic recovery
Southeast Asia has been hit badly. Daily infections for Indonesia, Thailand, Vietnam are at their worst, on a seven-day moving...
TAT expects 850 billion baht ($25.7 bln) in tourism revenue after successful reopening
The Tourism Authority of Thailand (TAT) has set this year’s revenue target at 850 billion baht, 300 billion of which...
Download 1xBet mobile and play all over the world
Placing profitable bets or playing in a casino is now possible comfortably even without being tied to a computer. It...
3 ways Asia can recover from the COVID-19 pandemic faster
Countries in the East Asia and Pacific region will benefit from cooperation in three major areas: vaccine deployment, reviving sectors...
Thailand’s Vaccine Strategy: What went wrong?
Questions are being asked, and not answered, over the decision to rely almost entirely on Siam Bioscience, a local, palace-owned...