Monday, January 29, 2018

Global trade tensions are on the rise, reflecting persistent current account imbalances. The US current account translates into a 10% Dollar overvaluation, mostly versus Asia where much of the current account deficit resides. We expand our trade imbalances framework across DM and EM markets. It points to overvaluation for Argentina, India, Saudi Arabia and Turkey, while currencies in EM Asia, including the RMB, are undervalued.

IIF Authors

Robin Brooks

Robin
Brooks
Managing Director and Chief Economist
+1.202.857.3609
rbrooks@iif.com

Gregory Basile

Gregory
Basile
Senior Research Analyst
gbasile@iif.com

Tariq Khan

Tariq
Khan
Research Analyst
+1 202 857 3339
tkhan@iif.com

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