| From Business-standard.com: Foreign exchange reserves of eight Asian countries have depleted by a record $36 billion in August alone, as foreign investors pulled out money and central banks were seen using the reserves to prop up falling local currencies.
Though the reserves of these Asian countries have dropped in the last four months, economists say a repeat of currency crisis that hit South East Asian countries a decade back is unlikely because of improved external reserves. “A full blown crisis that would overwhelm currency intervention, resulting in central banks being forced to jack up interest rates to regain control of the currency, is unlikely given Asia’s much-improved external position,” wrote Citigroup Global markets analyst Moh Siong Sim...... Full Article: Source
|