Robin Brooks: Asia current account surpluses rise but currencies do not appreciate

Robin Brooks: Asia current account surpluses rise but currencies do not appreciate
Asia surpluses up but currencies weak

Robin Brooks observes that Asia's current account surpluses are soaring. Despite this, regional currencies are not appreciating as financial theory would suggest.

Brooks points out that China is actively intervening through its state banks to keep the Yuan's value suppressed. He adds that similar interventions are taking place in Korea and Taiwan, leading to continued currency weakness despite strong external balances.

Brooks has recently weighed in on global commodity markets. He assessed how a possible peace deal could reduce the risk premium in Brent, allowing prices to fall to $85 a barrel and lowering U.S. gas prices to $4 per his analysis. In an earlier commentary, Brooks predicted Brent would likely stay in an $80-90 range due to continuing war-related risks and heightened premiums.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
Weekly Top Bonuses
up to $2,500
deposit bonus for all clients
CLAIM BONUS
Your capital is at risk.