Economics
Asia’s Central Banks Have Built a Buffer Against Surging Yields
- Holdings of foreign exchange rose by $467.7 billion last year
- Pace of reserves increase in 2020 was the fastest since 2013
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Central banks in Asia’s emerging economies added $467.7 billion to their foreign-exchange reserves last year, the most since 2013 when the region’s markets were rattled by the taper tantrum.
The increase reflects intervention in foreign-exchange markets and positive valuation effects that pushed total holdings to $5.74 trillion, just shy of the record $5.8 trillion hit in 2014. The tally excludes developed economies such as Japan and Australia.