[nasional_list] [ppiindia] 'Asia must prepare for dollar collapse'

** Forum Nasional Indonesia PPI India Mailing List **
** Untuk bergabung dg Milis Nasional kunjungi: 
** Situs Milis: http://groups.yahoo.com/group/ppiindia/ **
** Beasiswa dalam negeri dan luar negeri S1 S2 S3 dan post-doctoral 
scholarship, kunjungi 
http://informasi-beasiswa.blogspot.com **'Asia must prepare for dollar collapse'


Tuesday 28 March 2006, 11:45 Makka Time, 8:45 GMT    

           
            ADB: Possibility of a dollar collapse small but fallout huge
           
     
     



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."



He said because of the highly interdependent nature of East Asian economies, if 
countries worked together to allow their currencies to collectively appreciate 
against a tumbling dollar then the cost of adjustment would be spread.



"The possibility of a US dollar collapse or sharp decline may be small at this 
point but it would generate very significant turmoil so East Asian economies 
... ought to be ready for that."



The Manila-based ADB is working on several indices of Asian currencies that 
could be helpful to monitor exchange rate movements in the case of a sharp 
dollar decline, although its main intention is to help develop regional bond 
markets.



Political sensitivities



However, the ADB is still trying to decide which currencies to include in this 
Asian Currency Unit (ACU) amid political sensitivities about the inclusion of 
the Taiwan dollar given China's claim over the island.



The ADB had apparently been aiming to launch the ACU - a weighted basket of 
Asian currencies - before the bank's annual meeting in May, but Kawai said this 
would not be possible.



He said there was no specific launch date yet but hopefully it would be 
unveiled "in the next few months".



But Kawai played down suggestions that the ACU could foreshadow a single Asian 
currency like the European Currency Unit (ECU), which existed for two decades 
before the creation of the euro in 1999.



He said: "The ECU had an official status but the ACU has no such official 
status. We are not in the position to decide whether this should become a real 
currency or not."



[Non-text portions of this message have been removed]



***************************************************************************
Berdikusi dg Santun & Elegan, dg Semangat Persahabatan. Menuju Indonesia yg 
Lebih Baik, in Commonality & Shared Destiny. 
http://groups.yahoo.com/group/ppiindia
***************************************************************************
__________________________________________________________________________
Mohon Perhatian:

1. Harap tdk. memposting/reply yg menyinggung SARA (kecuali sbg otokritik)
2. Pesan yg akan direply harap dihapus, kecuali yg akan dikomentari.
3. Reading only, http://dear.to/ppi 
4. Satu email perhari: ppiindia-digest@xxxxxxxxxxxxxxx
5. No-email/web only: ppiindia-nomail@xxxxxxxxxxxxxxx
6. kembali menerima email: ppiindia-normal@xxxxxxxxxxxxxxx
 
Yahoo! Groups Links

<*> To visit your group on the web, go to:
    http://groups.yahoo.com/group/ppiindia/

<*> To unsubscribe from this group, send an email to:
    ppiindia-unsubscribe@xxxxxxxxxxxxxxx

<*> Your use of Yahoo! Groups is subject to:
    http://docs.yahoo.com/info/terms/
 



** Forum Nasional Indonesia PPI India Mailing List **
** Untuk bergabung dg Milis Nasional kunjungi: 
** Situs Milis: http://groups.yahoo.com/group/ppiindia/ **
** Beasiswa dalam negeri dan luar negeri S1 S2 S3 dan post-doctoral 
scholarship, kunjungi 
http://informasi-beasiswa.blogspot.com **

Other related posts: