ASEAN central banks to boost dollar holdings

Reading Time: 2 minutes

Bank of Thailand1Southeast Asian central banks are rebuilding their foreign-currency reserves, raising the prospect they will boost holdings of US Treasuries for the first time since February 2013, according to a Bloomberg analysis.

Thailand, Singapore, Indonesia, Malaysia and the Philippines reported increases of about 1 to 3 per cent in their international foreign-exchange holdings in September 2013 from the previous month, paring the combined decline this year to 2.6 per cent. Monetary authorities in Asia were among the most aggressive sellers of US debt in 2013 as Thailand, Singapore and Malaysia each reduced ownership by between 20 and 28 per cent through August.

Singapore, Thailand, Malaysia and the Philippines cut their US debt holdings by a total of 26 per cent to a combined $172 billion in the six months to the end of August, US Treasury Department data show. Some Asian central banks had drawn on their foreign-exchange reserves to rein in losses in their currencies in 2013. Those declines were partly triggered by the Fed’s signal on May 22 that it may reduce its $85 billion a month of bond purchases. Prior to the unexpected delay in tapering on September 18, all of Southeast Asia’s most-active currencies had slumped in 2013, led by Indonesia’s rupiah and the Philippine peso.

Fortunes have since reversed, with the rupiah and Malaysia’s ringgit leading a rally over the past month with gains of 3.3  and 2.4 per cent, respectively. Equities in emerging Asia attracted about $2 billion of investment in the week ended October 23, more than double the inflows the previous week, according to Australia & New Zealand Banking Group Ltd.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 2 minutes

Southeast Asian central banks are rebuilding their foreign-currency reserves, raising the prospect they will boost holdings of US Treasuries for the first time since February 2013, according to a Bloomberg analysis.

Reading Time: 2 minutes

Bank of Thailand1Southeast Asian central banks are rebuilding their foreign-currency reserves, raising the prospect they will boost holdings of US Treasuries for the first time since February 2013, according to a Bloomberg analysis.

Thailand, Singapore, Indonesia, Malaysia and the Philippines reported increases of about 1 to 3 per cent in their international foreign-exchange holdings in September 2013 from the previous month, paring the combined decline this year to 2.6 per cent. Monetary authorities in Asia were among the most aggressive sellers of US debt in 2013 as Thailand, Singapore and Malaysia each reduced ownership by between 20 and 28 per cent through August.

Singapore, Thailand, Malaysia and the Philippines cut their US debt holdings by a total of 26 per cent to a combined $172 billion in the six months to the end of August, US Treasury Department data show. Some Asian central banks had drawn on their foreign-exchange reserves to rein in losses in their currencies in 2013. Those declines were partly triggered by the Fed’s signal on May 22 that it may reduce its $85 billion a month of bond purchases. Prior to the unexpected delay in tapering on September 18, all of Southeast Asia’s most-active currencies had slumped in 2013, led by Indonesia’s rupiah and the Philippine peso.

Fortunes have since reversed, with the rupiah and Malaysia’s ringgit leading a rally over the past month with gains of 3.3  and 2.4 per cent, respectively. Equities in emerging Asia attracted about $2 billion of investment in the week ended October 23, more than double the inflows the previous week, according to Australia & New Zealand Banking Group Ltd.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid