One issue which I think could well come more sharply into focus this year is the value of the US dollar, which has come down in trade-weighted terms by about 12 per cent since the peak. The fall against the euro has been particularly noticeable – of the order of 25 per cent. Against the yen the fall has been much smaller.
Substantial changes in exchange rates rarely occur without some controversy, because they always create winners and losers – so they can be uncomfortable for some. All countries concerned will have an interest in how exchange rate movements, especially among the big currencies, affect their economies, and I suspect we may see a good deal of discussion about this in the year ahead.