(Aug 7): It used to be that a buildup in foreign reserves was seen as a bulwark against currency shocks and swift turns in investor sentiment.

Those days seem far away -- and that defense less robust -- as the trade conflict between the US and China evolves into a full-blown currency war that’s threatening emerging markets globally. Reserves of central banks in developing Asian nations, which have risen to almost US$5 trillion ($6.9 trillion) this year, will now be put to the test as currencies slide.

Have a premium account? Sign in to continue reading.

Unlimited access to all stories from $99.9/year*

The latest reporting and analysis from business and investments to news and views on social issues.


  • Simultaneous logins across all devices
  • Instant access to past digital issues
  • Unlimited access to The Edge Malaysia
  • *For annual subscription plan only. T&Cs apply


Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook