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Asian Currency Protectionism: Who’s Pegging Who?


Asia-CurrencyDec. 16 – As strains are caused in global currency relationships due to trade imbalances and the on-goings effects of the global economic crisis, the role of the U.S. dollar as a currency peg in some parts of Asia and the emergence of other regional currencies is having an impact on global trade. In this special report we look at which Asian currencies are pegged and by and to whom, including all neighbors of China and India.

The concept of pegs seems to be a result of smaller value currencies such as the Nepali rupee seeking protection against the wider world, or larger currencies like the Chinese yuan trying to manipulate trade. In the latter case, China is allowing the yuan to act as a small currency seeking built-in protection. The question becomes, protection from what?

The countries whose currencies are covered in the report include China, India, Afghanistan, Kazakhstan, Kyrgyzstan, Mongolia, Russia, Tajikistan, Bangladesh, Maldives, Nepal, Pakistan, Sri Lanka, Hong Kong, Japan, Macau, North Korea, South Korea, Taiwan, Brunei, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam, Australia and Papua New Guinea.

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