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1 Apr 2015
EM FX reserves falling – Blueprint Capital
FXStreet (Barcelona) - The Blueprint Capital FX Team comments that as China carry trade unwinds and the US monetary policy shifts, funds have been pushed out of EM.
Key Quotes
“Emerging market forex reserves are falling. From a peak $8tn in mid-2014, fx cash reserves have been whittled back as the China carry trade unwinds and the end of ultra-easy monetary policy in the US pushes funds out of other EM. The press is reporting that the world will “sorely miss” the recycling of emerging market reserves when the west’s easy monetary policy turns tighter, says one economist.”
Key Quotes
“Emerging market forex reserves are falling. From a peak $8tn in mid-2014, fx cash reserves have been whittled back as the China carry trade unwinds and the end of ultra-easy monetary policy in the US pushes funds out of other EM. The press is reporting that the world will “sorely miss” the recycling of emerging market reserves when the west’s easy monetary policy turns tighter, says one economist.”