Thursday 8 October 2009

Asia acts to support the downcast dollar

Telegraph
"The reason? They are worried about what the weak dollar might do to exports. They also worry about the damage the shifting exchange rate does to the portfolio value of their foreign exchange reserves, which are largely held in dollars. .....There has been much talk of the death of the dollar in recent weeks, but the fact of the matter is that Asia isn’t yet quite ready for it. It will be ten years or more before China is fully weaned off its dependence on the American consumer."

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