BI eased foreign exchange intervention
As indicated by the BI’s Net Foreign Asset position (consists central bank’s holding of gold, securities asset, IMF special drawing rights, and reserve fund), the degree of its reserve decline has eased compared with the Feb13 position. Based on our estimate, the FX reserves may have dropped US$0.4bn to US$104.7bn at the end of third week of Mar13, lower than the US$3.6bn decline in Feb13. This suggests that BI may have started to scale down its FX intervention especially to SOEs. Note that the decline in the reserves has included higher USD absorption through its term deposit instrument, which has increased by US$0.8bn during Mar 13.
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