29 March 2006

Asia must prepare for dollar collapse

Aljazeera.Net - 'Asia must prepare for dollar collapse': "East Asian economies need to prepare for a possible collapse of the US dollar, the Asian Development Bank says.
The warning comes as the US trade deficit reaches a record high and global interest rates continue to rise.

Masahiro Kawai, the ADB's head of regional economic integration, said on Tuesday: 'Any shock hitting the US economy or the global market may change investors' perceptions given the existing global current account imbalance.

'Our suggestion to Asian countries is: Don't take this continuous financing of the US current account deficit as given. If something happens then East Asian economies have to be prepared"

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