In order to address these issues, a BPLR system was introduced in April 2003. 5. However, the BPLR system evolved in a manner that did not meet the objectives. Competition in an environment of excess liquidity had forced the pricing of a significant proportion of loans far out of alignment with BPLRs undermining its role as a reference rate.
The United States is currently running very large trade and current account deficits - more than $ billion - because Americans are buying more goods and services from abroad than they are selling overseas. These deficits are being financed by the foreign acquisition of U.S. assets, especially bonds, with emerging-market economies providing the United States with about $ billion per year.