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Old 06-29-2012, 10:33 PM   #2
HedgeYourBets

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Aug 2008
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The NATO had purchase Asia products and loan money from Asia. Now they lower down their currency. They paid back their debt lesser. The product is cheaper and better quality
If the money they borrow from Asia is denominated in USD or Euro then the weakening of their currencies against Asian currencies have no impact on the borrowers. If the loan is denominated in Asian currencies then they have to spend more euro/usd to pay back Asian currency loans. I assume you are saying the loas are in USD/Euro, so the lenders from Asia get back less money in local currencies??

The countermeasure is to have the loans to them denominated in stable currencies... presumably this would be RMB
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