The reserves of developing countries exceeded $ 3 trillion

Governments are purchased in dollars to support national currencies and to create a pillow of airbag

Developing countries have accumulated so many dollars due to interventions that their foreign exchange reserves are currently already exceeding $ 3 trillion, Bloomberg writes .

Growing economies from Colombia to South Korea added $ 49 billion in the second quarter, which has been a maximum since September 2012. At the same time, out of 23 large developing national currencies, 18, according to analysts, will be reduced by the end of the year.

The reserves of South Korea grew to a record high level, $ 367, billion last month. The supply of India rose to almost a three -year maximum - $ 316 billion, Indonesia - to $ 108 billion, more than two times since 2008. Even the reserves of Russia grew in June. China is not included in the review, since it is $ 3.99 trillion more reserves than everyone else, combined. The People’s Bank of China reports that its treasury has grown into a record $ 42 billion in April - June. Developing countries increase currency reserves, since investors actively buy financial assets. In turn, growing economies are profitable to maintain a weak exchange rate of the local currency to ensure the competitiveness of their goods. Significant stocks of dollars should also soften sudden strikes: for example, since mid -2013, growing markets have lost $ 57 billion in just two months. National budgets will be filled with dollars while there is such an opportunity. Strategists predict that by the end of the year the Argentine peso will lose up to 11%, the Brazilian Real Madrid - about 7%, and the Columbian peso - 3.7%. Morgan Stanley last week said that the currency estimates of developing countries are becoming less attractive, and Goldman Sachs Group Inc. He warned that the currency is a “weak link” of such markets due to the prospect of raising rates in the United States and turning the quantitative softening program.