Asia must prepare for dollar collapse [View All]

'Asia must prepare for dollar collapse'
Tuesday 28 March 2006 8:33 AM 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.
AFP

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."

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