Thursday, October 25, 2007

One big factor is the shrinking dollar.

A broad group of developing countries face upward pressure on their currencies.

A decade ago some of these countries battled currencies crisis.

One big factor is the shrinking dollar.

The response by central banks to fight inflation has been to buy dollars.

Developing countries are sitting on massive U.S. dollars assets that they may not need.

Why do they do that?. Because they don't have real free markets and don't have modern financial systems.

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