Emerging market central banks building up foreign reserves
They are replenishing shortfalls created as they try to prop up their currencies during recent routs
New York
CENTRAL banks in developing economies are taking advantage of the biggest rally in their currencies since 2010.
Led by Turkey and Thailand, they're using stronger exchange rates to build up foreign reserves for the first time in two years, replenishing shortfalls created as they attempted to prop up their currencies during recent routs. Bigger defences mean they'll be able to better ride out destabilising plunges in the future as they make their economies more appealing for traders, according to investment firms including Manulife Asset Management and GAM UK Ltd.
International reserves have grown by US$154 billion, or 1.4 per cent, since the end of March to US$11 trillion globally, according to data compiled by Bloomberg. Turkey's cash coffer expanded the most during the …
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Fed survey cites inflation, US election as key financial stability risks
Oil prices steady after Iran plays down reported Israeli attack
G7 pledges swift aid for Ukraine, seeks to calm Middle East
H5N1 strain of bird flu found in milk: WHO
China moves to boost foreign investment in domestic tech companies
Xi orders China’s biggest military reorganisation since 2015