The exchange rate's ability to do so is not compromised by Australia's net foreign liability position. The fact that the liabilities are effectively denominated in Australian dollars while the assets are in foreign currency does not impede the exchange rate adjustment. If anything, it actually helps the adjustment. This wouldn't be true if the debt were denominated in foreign currency.
9  Own calculations of average annual changes based on data from INEGI and the Groningen Growth and Development Centre 10-Sector Database, July 2014. 4  BIS central bankers’ speeches  greatly to the efforts of both scholars and practitioners in putting pieces of the productivity puzzle together.