Asia’s economy is a bit of a mess. Actually it's a big mess. And it doesn’t look like this situation is about to improve any time soon either. Inflation looks set to continue; capital flows are extremely volatile. But the fact that China has been trying to liberalize its currency exchange rate could be good news for economies in the region, enabling them to move away from trade settlement within the current global economic climate. It’s a shame Pridiyathorn Devakula is somewhat removed from the political scene these days though. Thailand’s previous Deputy Prime Minister is quite well-to-do these days. His wife has a staggering Bt258 million to enjoy while their daughter isn’t too badly off either at Bt7 million. Perhaps if the family shares some of its wealth it can pull the region out of its financial hole.
Yuan Goes International
But even if the Devakula family decides to keep their wealth to themselves (giving them near-billionaire status), the yuan need not suffer. It seems like the government of China is moving toward the possibility of internationalizing this currency alongside the Euro and the dollar. As well, plans are set for Hong Kong to become the traing center for yuan-denominated assets enabling foreign companies to “issue yuan-denominated assets in Hong Kong” which will also mean the Bank of China NY branch will be able to open yuan deposits. The hope is that investment abroad will increase too. As well, if they adopt Devakula’s idea of “co-operation among regional economies” to establish a benchmark currency, then the region’s economy could potentially peak.
