Report: Asian Countries Now Have Greater Tolerance for Currency Appreciation

Central banks and governments in Asia become more comfortable with appreciating currencies, the Institute for International Finance stated recently in an analysis.

The US-based organization created a database that tracks foreign exchange intervention in spot and forward markets across Asia’s emerging economies, according to a report by Bloomberg.

The IIF analysis of China, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Taiwan and Thailand found a greater tolerance for appreciation, the report says.

This is especially so for China—which allowed the renminbi to appreciate unfettered by intervention in 2017, while other countries that also look appreciation-friendly include Malaysia, which has essentially stood on the sidelines as its currency appreciated versus the dollar last year, IIF was cited as saying.