Capital Flight Drains Reserves in Asia

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Aug. 26 (Bloomberg) –- Bloomberg's Haslinda Amin reports on Asian nations draining their foreign reserves to help boost their currencies. She speaks with Zeb Eckert on Bloomberg Television's "First Up." (Source: Bloomberg)

Let's go live for more on the story.

Just how quickly is asia depleting reserves?

Let's put it this way.

They have the largest reserves.

They have cut their holdings this year.

There was an 18% reduction at almost a three-year low.

They're looking to punch 11% recently.

India is down four percent this year.

The rupee dropping.

Basil dollars to support this amid outflows.

All of them are rising at its lowest paid.

There are holdings that are lightly controlling.

Asia has been particularly hit hard in the route.

This is circulating in the global economy.

Look at the asian dollar index.

They founded a note of caution.

The flight of capital may trigger this.

Especially so for those with large deficits in their current account.

Those in the market say indonesia and asia are likely to see further depletions in their reserves.

It is at a pace that we have not seen in quite a while.

Given how volatile these currencies have been, what are investors likely to do with the reserves now?

What has been market and telling us?

Diversify.

That is what investors will continue to do.

They will diversify this into foreign currencies.

Pimco says it is probably an irreversible trend.

It is unlikely to reverse.

There is a recognition of the increasing role of the euro.

It has made a significant improvement.

They are up from a low of 17% more than a decade ago.

This text has been automatically generated. It may not be 100% accurate.

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