Reported 4 days ago
Central banks in Asia are increasingly using dollar forwards to shield their currencies from a strong dollar, raising concerns about potential future risks. The Reserve Bank of India and Bank Indonesia reported all-time high net short forward positions, indicating a shift in strategy to manage currency depreciation. While this approach may help temporarily maintain confidence and official reserves without attracting political scrutiny, experts warn that it could merely postpone currency issues rather than resolve them. The Indian rupee and Indonesian rupiah have recently underperformed, highlighting the challenges these central banks face.
Source: YAHOO