Introduction
Developing Asia remains at the core of global
payment imbalances. Globally, developing
Asia’s net current account surplus amounted
to 36 per cent of the world’s current account
surpluses in 2010, while averaging about 30
per cent during the past decade (see Figure 1).
The region has also accumulated sizable—and
in some cases excessive—foreign exchange
reserves since the late 1990s.1 The bulk of
the remaining current account surpluses were
in the Middle East and the Commonwealth
of Independent States. On the other side of
the ledger, the USA continues to be home
for the lion’s share of global current account
deficits.2