Medium and Long-Term Return Forecasts | Q3 - 2021
Wednesday 11 August 2021
The first half of 2021 has been witness to exceptional growth in demand fueled in large part fiscal stimulus and waning Covid-related restrictions. Latest data release indicates the major economies may be at the onset of high-water mark of economic acceleration and the growth will slow down worldwide. Uncertainties of future cash infusions paired with ebb and flow from Covid re-openings are likely to be further headwinds to further short-term demand acceleration.
First half of 2021 witnesses exceptional growth
Global foreign exchange regime faces winds of change
Regionalisation, receding global value chains, and the reshoring of manufacturing activities will make the world less dependent on dollars.
Upheaval in the global FX regime
The global FX regime of the last 20 years has been characterised by a distinct pattern of capital flows. At its core, Asian countries (mostly China) recycled their current account surpluses into USD-denominated FX reserves
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