21.   That leaves the country vulnerable to external shocks such as an economic slowdown in the United States.

22.   The downside for forwards was limited, given uncertainties on local interest rates which were vulnerable to external shocks, analysts noted.

23.   The Singapore economy is still vulnerable to external shocks, particularly from neighboring Indonesia and Malaysia, the agency said.

24.   Today, most economists recommend floating exchange rates for emerging economies because they allow countries to better absorb external financial shocks.

25.   Without floating exchange rates to absorb external shocks, countries in Asia would still be able to cope through cooperation.

26.   As a result, he said the outlook remained positive, with the main risk coming from an external shock to the economy.

27.   But a Bank report warned that the country still faced risks of external shocks, a growing current account deficit and a slowdown in structural reform.

28.   Central Bank of the Philippines governor Rafael Buenaventura said the swap agreements would help guard against external shocks that might affect the foreign exchange rate.

29.   European Central Bank president Wim Duisenberg made clear on Monday that the ECB favours a gradualist monetary policy response to external shocks rather than short-term interest rate changes.

30.   They said it was important to enhance policy cooperation as the interdependence of member economies increase to make them more resilient to external shocks from outside the region.