China’s currency has started falling again. The last major depreciation of the Chinese renminbi began in the second half of 2015, triggered by a surge in capital outflows.
The Philippine economy grew more than six percent for a ninth consecutive quarter, cementing its position as one of the fastest-expanding in the world.
Vietnam’s central bank said record-high foreign reserves will enable it to keep the currency stable for the rest of the year as the government focuses on boosting growth in the Southeast Asian economy.
Thailand’s already “very accommodative” monetary policy is fuelling robust growth that’s spreading across the economy, said Bank of Thailand Governor Veerathai Santiprabhob.
Malaysia, and to a lesser degree Indonesia, Thailand and the Philippines, remain more exposed to exchange rate risk than other developing economies in East Asia and the Pacific as global financial conditions tighten, the World Bank said.
Vietnamese working abroad and sending money home will help keep the currency stable and enable the central bank to focus on supporting economic growth, a senior official said.
With Indonesia and Vietnam cutting interest rates in the past two months and Thailand fending off pressure to do the same, the Philippines is emerging as the region’s lone candidate for a rate increase this year.
A public rift between Thailand’s central bank and government on interest rates shows just how much of a dilemma the baht has become for the economy.
Its sovereign bonds don’t yield much more than US Treasuries, they cost less to insure than Spanish notes and its currency is more stable than China’s managed yuan.