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📝 EM Asia FX Interventions Ticking Up As USD Remains Strong: BofA

We're looking at a tick up in FX interventions in EM Asia.

Emerging Asian countries excluding China have reported their reserves declining the most over recent months, suggesting these countries are using these reserves to defend their currencies.

As EM currencies are declining to record-lows against the dollar, that’s creating further difficulties for central banks, which were already failing to meet their policy mandates of domestic price stability. Thus, there is a shift in policy rhetoric from seeing moderate FX depreciation as being growth-supportive to excessive volatility hampering the recovery.

Foreign official-held US Treasury outflows accelerated in recent weeks as the dollar has gained. - BofA



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