The United Kingdom accounts for 25 per cent of the outstanding value of foreign investment in Australia. The United States is not far behind, at 24 per cent. In terms of the flow of new investment, the United States has been by far the largest source over the past decade.
Any currency wars which inhibit international trade will affect economies highly dependent on exports and will certainly trigger uncertainty, with an adverse impact on capital flows to emerging market economies. It is for this reason that the G-20 agenda argues against the use of competitive devaluations as a deliberate policy measure.