2023 Was a Wild Ride for Investment in Southeast Asia – The Diplomat

Although several ASEAN countries recently joined a cross-border digital payment system, the fact remains that the global financial system follows the U.S. dollar. That means, like it or not, when the U.S. Federal Reserve raises or lowers interest rates it has a ripple effect on markets around the world. For proof of this, we need look no further than the wild ride that two major Southeast Asian economies have been on in recent years.

When the COVID-19 pandemic hit in 2020, the Fed dropped its benchmark interest rate to basically zero. This…