6/15/2021 11:44:24 PM GMT | By Anil Panchal
As global markets brace for the US Federal Open Market Committee (FOMC) meeting on early Wednesday, Bloomberg came out with the analytical piece suggesting a build of strong forex reserves by Asia’s emerging economies.
“Central bank holdings of foreign currencies in the region’s fast-growing emerging economies hit $5.82 trillion as of May, their highest since August 2014. When China’s cash pile is stripped out, emerging Asian central banks’ reserves stood at an all-time high of $2.6 trillion,” said the piece.
Bloomberg also adds, “While the Fed is expected to maintain a dovish outlook when it meets this week, economists say the accelerating US recovery means the bank will need to signal a policy turn sooner than anticipated. Central banks in South Korea and New Zealand already have said their improving economies may eventually justify higher interest rates.”