Many countries are at the moment in a Financial crisis. The question is, is Asia the next victim of worldwide financial crisis. Countries like Hungary raised their interest , to avoid a bigger crisis. Higher interest rates are often the last resort before a currency crashes and a crisis start. These crisis are spreading over many countries and could also spread over Asia.
Already have certain countries like Indonesia, South Korea, the Philippines felt this. They had to devaluate their currency. These countries concluded that a crisis always start with a country that already has problems. That’s why they also took measurements like exchange reserves and better developed banking systems.
But Asia, just like all other regions, the currency can also fall. But Asia is prepared. They have the best underlying fundamentals of any region and that is why the Asian currencies will bounce back once the crisis is over.
I believe everything is possible in Asia. Some countries have already experienced a bit of the crisis, but they anticipate well. Their economies are still working fine and they are getting smarter by taken measurements. The problem of the Asian economy is that there isn’t a unity between the different countries of Asia. If Asia had this, they would have a strong economy, with many prospects for the future.
Already have certain countries like Indonesia, South Korea, the Philippines felt this. They had to devaluate their currency. These countries concluded that a crisis always start with a country that already has problems. That’s why they also took measurements like exchange reserves and better developed banking systems.
But Asia, just like all other regions, the currency can also fall. But Asia is prepared. They have the best underlying fundamentals of any region and that is why the Asian currencies will bounce back once the crisis is over.
I believe everything is possible in Asia. Some countries have already experienced a bit of the crisis, but they anticipate well. Their economies are still working fine and they are getting smarter by taken measurements. The problem of the Asian economy is that there isn’t a unity between the different countries of Asia. If Asia had this, they would have a strong economy, with many prospects for the future.
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