Is Asia Creating A 'Euro'?

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The New Asian ‘Euro’? Could It Signal A Coming Decade Of Outperformance From Emerging Markets?

 

Asian forex volatility is close to all-time lows. This surely suggests deliberate currency management? It may even point to a de facto ‘Euro-like’ currency bloc? Of course, nothing has been formally announced, but this initiative may have evolved out of the 2016 Shanghai Accord between G-20 Leaders? If true, it has huge implications for Asia and Emerging Markets. First, collective actions to stabilise currencies will boost capital inflows. Second, shadowing the US dollar will allow these economies to import loose US fiscal and monetary policies. Third, it will reinforce existing uneven intra-regional development, which could possibly help to revitalise China’s giant BRI project?

 

 

See our latest published research, Global View - The New Asian ‘Euro’? Could It Signal A Coming Decade Of Outperformance From Emerging Markets? - April 2021

 

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