GRAPHIC-Emerging central banks rebuild hard currency reserves

lunes 14 de julio de 2014 11:15 GYT

By Sujata Rao and Vincent Flasseur

LONDON, July 14 (Reuters) - Hard currency reserves across emerging markets excluding China have surged by around $100 billion from levels at the end of 2013 as central banks exploit this year's buoyant investment inflows to refill their depleted coffers.

With an eye on the day when U.S. interest rates eventually start to rise, policymakers in emerging economies are actively buying dollars. They see them as a bulwark against the kind of selloff that ravaged their markets last year due to signs that the U.S. bond-buying programme could soon be wound down.

They have been helped by renewed interest from investors who have pumped more than $150 billion this year into emerging stocks and bonds, data from the Institute of International Finance shows.

As a result, reserves in India, Indonesia and Mexico have risen by about 8 percent this year, leading gains in big emerging economies, the following graphic shows:

For TABLE on central bank reserves

"We are seeing rebuilding of emerging market reserves thanks to the strong inflow and that's allowing them to recover after the losses of last year," said David Hauner, head of Emerging EMEA fixed income and economics at Bank of America Merrill Lynch.

Indian reserves for instance are at $315 billion, over $40 billion above a trough hit last year as the Reserve Bank of India has intervened to rebuild buffers and also stem gains in the rupee's exchange rate.   Continuación...