Asian governments hold the key to dollar’s future

Writing in RBS Reserve Management Trends 2005, a report launched last week by London-based publishing house Central Banking Publications (CBP), David Hale, chair of independent consultants Hale Advisors, said East Asian economies have $2.1 trillion, or 63%, of the world total of FX reserves. "It is the currency policies of the East Asian central banks, not Opec or any other power, that will determine how the US resolves its payment deficit."

He said the way governments in the region operate mean