By Heda Bayron, Hong Kong, 06 June 2007
http://www.voanews.com/english/2007-06-06-voa11.cfm
These days, several Asian currencies such as the Philippine, the Malaysian and the Indian have appreciated against the US dollar. The value of their currencies is rising continually, and this phenomenon reflects Asia’s powerful economy. Some people have different opinion about this situation. If the currency is gaining against the U.S, the export price to the U.S is so expensive that it becomes very difficult. Decreasing exports can damage the economy of the countries. For example, Korea is exporting several products to the U.S, and this export accounts for a great part. On the other hand, some countries think this situation is good for their economy. For instance, the Philippine peso appreciation can be helpful in the economy in that the oil import price will be cheaper. Actually, Asian exports have various markets such as BRIC (Brazil, Russia, India, China) instead of the U.S. Also, exporting Europe is increasing because some countries’ currency has depreciated against euro.
Currency has strong effect on each economy. Especially, Korea imports various things such as automobile, cloths from the U.S, and also exports several things such as rice, pork, and some fruits to the U.S. Actually products which Korea export to the U.S account for large amount of Korea economy. If currency has gained against the U.S dollar, it has bad effect on economy by decreasing export because Korea and the U.S have connected closely. However, Philippine thinks this phenomenon is good for their economy, so I think it is up to each country’s situation.
Therefore, each government should make suitable policy to protect their economy.
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