BOAML highlights potential for currency mismatches
Bank flags rising proportion of foreign-currency public debt issuance in Malaysia and Indonesia
Kuala Lumpur
BANK of America Merrill Lynch (BOAML) has flagged a rising proportion of foreign-currency public debt issuance in Malaysia and Indonesia and warned of implications for financial stability and macroeconomic policy given the potential for currency mismatches.
Currency misalignments - a key vulnerability that exacerbated the Asian financial crisis of 1997-98 starting with the attack on the Thai baht - appear to be re-emerging as governments are forced to opt for more foreign-currency debt financing because of a surge in local bond yields and diminishing foreign interest.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Vietnam tycoon appeals against US$27 billion fraud death sentence
US announces new restrictions on firearm exports
Central banks will probably only cut half as much as they hiked
US consumer sentiment falls as inflation expectations climb
HSBC wins £1.3 billion suit over Disney film finance scandal
WTO countries to reboot dispute reform negotiations