Mohamed El-Erian Slams Bank Of Japan's Soft Tone: Pushes For Reduction Of Risky Yen Carry Trades
Mohamed El-Erian Slams Bank Of Japan's Soft Tone: Pushes For Reduction Of Risky Yen Carry Trades
"I suspect that the BoJ's pro-risk signal, which is partly due to external pressures, will eventually conflict with the country's domestic economic requirements," El-Erian wrote. Mohamed El-Erian, Chief Economic Advisor at Allianz, has called for a cautious unwinding of Japan's excessive 'carry trades' following recent dovish signals from the Bank of Japan. El-Erian highlighted the risks associated with the pro-risk approach adopted by the BoJ.
安聯首席經濟顧問Mohamed El-Erian在日本銀行最近的鴿派信號後呼籲謹慎減少日本過度的套息交易。El-Erian強調了採用風險偏好方法所帶來的風險。
What Happened: El-Erian took to social media platform X to express his apprehensions about the BoJ's pro-risk approach. He highlighted the potential conflict between this approach and Japan's domestic economic needs.
何出現：El-Erian在社交媒體平台X上表達了他對BoJ的親風險方法的擔憂。他強調此舉可能會與日本的國內經濟需求存在潛在衝突。
El-Erian recommended "Rather than encourage markets to place new "carry trades," as it is this morning, it should be used as an opportunity to unwind the remaining excessive levels of such trade in a more orderly fashion."
El-Erian建議：「與其像今天這樣鼓勵市場進行新的『carry trades』，不如將其作爲卸載這些過多貿易的更有序方式的機會。」
"I suspect that the BoJ's pro-risk signal, which is partly due to external pressures, will eventually conflict with the country's domestic economic requirements," El-Erian wrote.
「我懷疑BoJ的親風險信號（部分原因是外部壓力導致的）最終會與該國的國內經濟需求發生衝突，」El-Erian寫道。
Back to above 147 per US dollar:
The Yen is currently trading 2% weaker on the day in response to dovish signals from the Bank of Japan.
Specifically, BoJ Deputy Governor Uchida noted that, due to "financial and capital markets at home and abroad being extremely volatile," he... pic.twitter.com/5Lg39G4jKa— Mohamed A. El-Erian (@elerianm) August 7, 2024
回到每美元超過147：
由於日本央行發出鴿派信號，日元目前在當天交易中下跌了2%。
具體來說，日本銀行副總裁內田表示，由於「國內外的金融和資本市場非常動盪」，他... pic.twitter.com/5Lg39G4jKa— Mohamed A. El-Erian (@elerianm) 2024年8月7日
El-Erian highlighted that the Yen has weakened by 2% against the U.S. dollar, trading above 147 per dollar. This decline follows dovish signals from the BOJ.
El-Erian強調，日元對美元貶值了2%，交易價超過每美元147。這種下跌來自日本央行傳遞的鴿派信號。
El-Erian emphasized that financial stability ultimately hinges on economic stability.
El-Erian強調，金融穩定最終取決於經濟穩定。
Why It Matters: The concerns raised by El-Erian come amid a backdrop of significant economic events in Japan. Recently, Peter Schiff criticized the BoJ's decision to halt rate hikes, warning that inflation could severely impact Japan.
爲何重要：El-Erian提出的擔憂出現在日本重要經濟事件的背景下。最近，彼得·希夫特批評了BoJ停止加息的決定，並警告通貨膨脹可能會嚴重影響日本。
Additionally, the BoJ's policies have been blamed for a major selloff in global markets. Economist Jim Bianco attributed a sharp decline in global markets to the unwinding of the Japanese yen "carry trade," which began when Japan's central bank raised interest rates.
此外，BoJ的政策被指責爲全球市場的大規模拋售帶來了問題。經濟學家Jim Bianco將全球市場的大幅下跌歸因於日元『carry trade』的卸載，這是當日本央行加息時開始的。
The yen "carry trade" involves borrowing yen at low interest rates and investing in higher-yielding assets elsewhere. This practice has been significantly impacted by the BoJ's recent decisions.
日元的『carry trade』涉及以低利率借入日元，然後將其投資於其他更高收益的資產。BoJ最近的決定對此產生了重大影響。
Arindam Sandilya, co-head of global FX strategy at JPMorgan, noted that the unwinding of these trades is only halfway done, suggesting further market volatility ahead.
摩根大通全球外匯策略聯席主管Arindam Sandilya指出，這些交易的卸載只完成了一半，隱含着未來市場波動的風險。
