As of now, we have not seen sufficient and solid academic studies illustrating the linkage between the savings ratio and determinant factors, such as the level of wealth as measured by per capita GDP, foreign exchange rate, the development of financial intermediation and capital market, tradition, demographic structure and social security system.
While exchange rate is statistically correlated with savings ratio to some degree, the coefficients are generally low and the correlation usually insignificant. It therefore seems that savings ratio can’t be adjusted by simply adjusting exchange rate. Identifying the factors determining savings ratio is a major policy challenge for all countries.