U.S. debt default? Asian policymakers ready $6 trillion forex safety netSubmitted by meekandmild on Fri, 10/11/2013 - 08:57
MUMBAI/SEOUL (Reuters) - As the U.S. struggles to avert a debt default, Asia's policymakers have trillions of reasons to believe they may be shielded from the latest financial storm brewing across the Pacific.
From South Korea to Pakistan, Asia's central banks are estimated to have amassed some $5.7 trillion in foreign exchange reserves excluding safe-haven Japan, much of it during the last five years of rapid money printing by the U.S. Federal Reserve.
Data this week showed those reserves continued to pile up, with countries having added an estimated $86.7 billion in the July-September quarter, according to data for 12 Asian countries whose reserves are tracked by Reuters.