Covid Economic Scars, Digital Yuan-Dollar, Debt Crunch: Eco Day

Welcome to Monday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the week.

  • Just as some patients recovering from Covid-19 suffer long-lasting symptoms, it’s becoming clear that the same will be true for the global economy once this year’s V-shaped rebound fades
  • China’s goal for internationalizing its currency is not to replace the dollar, and the efforts to create a digital yuan are aimed at domestic use, a central bank official said. Having rebounded from its worst month since 2019, China’s yuan is facing a wave of selling pressure
  • Currency stress and higher commodity prices have forced emerging-market central banks to turn hawkish before recoveries have gained traction, Bloomberg economics says in this outlook
  • China is signaling it’s open for business with the resumption of its high-profile Boao Forum for Asia, an opportunity to make a renewed effort to lure foreign investors in a post-pandemic world
  • Treasury’s report may have spared Taiwan the currency manipulator label but it hinted the U.S. could exert greater pressure on Taipei’s central bank to allow the local currency to appreciate further
  • Europe’s late but accelerating vaccination push is allowing monetary officials to begin pondering an economic future free of Covid-19
  • Mario Draghi is using the prime minister’s post to deliver the one thing he could never conjure up as ECB chief: massive fiscal stimulus
  • Saudi Arabia’s latest economic plan comes with a big risk: while it might boost investment, it could hit the government’s finances
  • Withdrawing U.S. troops from Afghanistan meshes with the Biden administration’s goal of focusing resources on China and the Covid-19 pandemic, Secretary of State Antony Blinken said

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