2019.08.2707:06:00UTC+00RBA's Debelle Says External Accounts Not A Source Of Vulnerability

Australia's balance of payments and external accounts have undergone a significant transformation, Reserve Bank of Australia Deputy Governor Guy Debelle said Tuesday.

The structure of Australia's external accounts now resembles that of the United States, he told the Economic Society of Australia.

Although Australia doesn't have the exorbitant privilege of the US, the external accounts do not constitute a source of vulnerability and have become increasingly resilient over the past 30 years, he noted.

The current rule-based global trading system has delivered sizeable benefits for global growth and Australia has clearly been a major beneficiary.

Global trade war poses a 'significant risk' to both Australia and other economies, he said.

"The current threats to the system are a significant risk to both Australia and the world," Debelle added.