GRAPHIC-Mexico, Malaysia lead FX reserve falls in emerging markets ex-China

jueves 15 de octubre de 2015 12:01 GYT

By Sujata Rao

LONDON Oct 15 (Reuters) - Mexico, Indonesia and Malaysia saw some of the sharpest falls in central bank reserves over the past quarter as investor flight from emerging markets forced policymakers to defend their currencies.

The issue has drawn particular attention after Chinese reserves, the world's biggest, fell by a record $180 billion in the third quarter due to interventions to support the yuan after a mid-August devaluation.

But smaller emerging economies too are suffering steady reserve losses.

Investors withdrew a record $40 billion from emerging stocks and bonds in the third quarter, the Institute of International Finance said. Equities fell almost 20 percent and dollar bond yield spreads rose almost 100 basis points over U.S. Treasuries.

Amid the turmoil, most countries tried to support their currencies, which hit record or multi-month lows against the dollar.

Mexican and Malaysian reserves fell by over $12 billion between July and end-September, while Indonesia and South Korea lost $6.3 billion and $6.9 billion respectively, though some losses were down to euro-dollar exchange rate effects.

Malaysian reserves are down by $22.7 billion or almost a fifth this year, and Indonesia has lost $10 billion or 9 percent, this graphic shows:

Graphic on Chinese reserves:   Continuación...