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Marsh on Monday: Germany amassing huge surpluses — and huge risks

BERLIN (MarketWatch) — As one of the world’s largest exporters, Germany saw an important part of the political and economic rationale of entering European economic and monetary union in 1999 as lowering risks on its international commercial interactions.

Nearly two decades later, Germany, more than ever, is an export champion. It is likely to register the world’s largest trade surplus this year, according to the Organisation for Economic Co-operation and Development, at $324 billion (against China’s $314 billion), and will amass a record current-account surplus of 9.2% of gross domestic product.

Yet, as a result of the large imbalances within EMU that these surpluses symbolize, Germany is a long way from insulating itself against foreign-currency risks.

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