Current account balances are key in EM, says Westpac

As risk sentiment sours due to the ongoing trade wars between the US and China, current account deficits will weigh on some EM units

Frances Cheung, Head of Macro Strategy for Asia, Westpac
Frances Cheung: "China’s approach is to focus on internal measures"


As trade tensions between the US and China linger, investors are preparing for a potential contagion in emerging market (EM) currencies, with volatility most likely to hit units that lack the backing of substantial current account surpluses.

In the absence of a resolution of the tit-for-tat tariff war that two of the world’s largest economies are waging, investors are worried the spat will have an impact on growth prospects in Asian economies by reducing trade

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services -, or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: