Asia’s Currency-Defense War Chest Has Swelled to $8 Trillion

Asia’s foreign-exchange reserves have surged to almost $8 trillion, providing the authorities from Tokyo to Mumbai with ample ammunition if they need to step up defending their currencies.

The major central banks in the region have added more than $400 billion to their reserves this year, with 11 of the largest monetary authorities now having a stockpile of close to $8 trillion, according to data compiled by Bloomberg. The increase has been helped by this year’s decline in the dollar and rally in gold prices.