Asia should ditch USD to cut settlement risk
The findings were part of a working paper by the Bank of Japan and the Bank for International Settlements on the evolution of trading activity in the Asian FX markets. The working paper, distributed this month, said the US dollar was on one side of about 97% of transactions involving Asian currencies in April last year.
The heavy use of the dollar as a vehicle currency heightens Asian currencies' vulnerability to settlement risk, the report said. This is because the time difference between Asia
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