Nov. 20 at 6:25 AM
$BABA $BIDU Future in Asia
Asia’s foreign-exchange (FX) reserves have surged to almost US
$8 trillion, providing the authorities from Tokyo to Mumbai with ample ammunition if they need to step up defending their currencies.The major central banks in the region have added more than US
$400 billion to their reserves this year, with 11 of the largest monetary authorities now having a stockpile of close to US
$8 trillion, according to data compiled by Bloomberg. The increase has been helped by this year’s decline in the US dollar and rally in gold prices.“Asia Pacific countries have ample FX reserves despite the drawdown by some nations on the back of smoothing activities,” said Asia-Pacific macro strategist at BNY in Hong Kong. “At present, the import cover ratio for regional countries is at more than comfortable levels.”
The biggest contributor to this year’s foreign-reserve buildup was China, which increased its total by US
$141 million, and Japan which added US
$116 million.
