Skip to content
Subscriber Only

Worldwide Dollar Crunch Raises Red Flags in Asia Debt Market

  • Indonesia, Malaysia, India face more challenges in repayments
  • Southeast Asia, India face a 67% jump in payments in 2022
Mumbai on Partial Lockdown as India Tries to Contain Virus
Photographer: Dhiraj Singh/Bloomberg
Updated on

As the shortage of dollars sweeps the globe, cracks are starting to show up in Asia’s emerging markets, despite the hefty foreign-reserve cushions built up over the years.

The squeeze on U.S. currency is putting pressure on emerging Asia debt. Southeast Asian and Indian government and corporate payments are set to jump 67% in 2022 to $41.9 billion, according to data compiled by Bloomberg. Dollar payments are expected to peak at $44.4 billion in 2024.