Asian central banks favour liberalisation

The pressure for stronger Asian currencies is clear. Evidence of this is seen in the huge build-up of foreign exchange reserves and the healthy appetite seen for Asian equities. The big picture is that the US current account imbalance is becoming more unsustainable as the world’s largest economy outgrows its major trading partners. The mechanism to address this imbalance is a weaker US dollar. We expect the US dollar decline to continue in an orderly manner. The problem lies in the reluctance of