Question 1

In 2025, the Bank of Japan (BoJ) made significant shifts in its monetary policy, including ending its negative interest rate policy and discontinuing Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control (YCC). What was a primary driver cited for these policy changes?

Accepted Answer

A need to stabilize the depreciating Japanese yen and manage rising inflation.

Question 2

By April 2025, the Chinese Yuan (RMB) had increased its share of global SWIFT payments to 3.5%. What significant trend does this indicate regarding the RMB's international role?

Accepted Answer

Growing institutional trust in the RMB for international transactions.

Question 3

In 2024, the global semiconductor market was significantly influenced by Taiwan's role. Despite diversification efforts by companies like TSMC establishing plants abroad, what policy did the Taiwanese government mandate regarding cutting-edge chip work?

Accepted Answer

It must be conducted only in Taiwan.

Question 4

The demographics of Asia, particularly China and Japan, present unique economic challenges. What is a primary concern associated with widespread declines in birth rates in these countries?

Accepted Answer

Reduced economic growth due to a shrinking pool of available workers.

Question 5

In 2024, global foreign direct investment (FDI) saw a contraction. However, developing Asia remained a significant recipient. Which sub-region within Asia demonstrated particularly strong growth in FDI inflows, reaching a record US$225 billion?

Accepted Answer

Southeast Asia (ASEAN)

Question 6

China's efforts to internationalize the yuan have led to a steady rise in its global presence. By March 2025, what milestone was reached regarding the yuan's settlement in China's cross-border trade?

Accepted Answer

Over half (54.3%) of trade was settled in yuan.

Question 7

The US-China trade tensions have had significant ramifications for Asian economies. What strategy have some companies adopted to navigate these tensions and potential tariffs, leading to benefits for countries like Vietnam and Indonesia?

Accepted Answer

Diversifying production away from China ('China+1' or 'Not China' approach).

Question 8

In 2024, India emerged as Asia's FDI powerhouse. According to reports, it became the third-largest recipient of greenfield projects globally, surpassing which two traditional European economic giants?

Accepted Answer

Germany and the United Kingdom

Question 9

Regarding sustainable finance in Asia, what was the approximate share of global green bond issuance attributed to the Asia-Pacific region in 2024, indicating its growing role in financing the global energy transition?

Accepted Answer

Approximately 24%

Question 10

The Bank of Japan's (BoJ) monetary policy pivot in 2024-2025 has global implications. One significant effect is on the 'yen carry trade.' What is the 'yen carry trade' and how has the BoJ's policy shift impacted it?

Accepted Answer

It's a strategy of borrowing yen at low rates to invest in higher-yielding assets abroad, which has become less attractive.

Question 11

By the end of 2024, the Chinese yuan accounted for a certain percentage of global trade finance. What was this percentage, and how did it compare to the previous year?

Accepted Answer

6%, up from under 2% the previous year.

Question 12

In 2025, India's equity market experienced pressure due to various factors including US tariffs and weak earnings. However, a strong policy push was introduced to revive domestic growth. Which of the following was a key policy measure mentioned to potentially ease inflation and fuel demand?

Accepted Answer

A significant overhaul of the Goods and Services Tax (GST).

Question 13

The geopolitical landscape surrounding Taiwan's semiconductor industry is critical. Given that TSMC produces a significant portion of the world's most advanced chips, what is a major concern for the supply chain's stability?

Accepted Answer

Geopolitical uncertainty and the potential for supply route disruptions.

Asian Economies Navigate Global Currents: Interest Rates, Trade Wars, and Tech Dominance in 2025-2026

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