Archive · 23 Jun 2025
Asian Central Banks Reduce Currency Intervention Amid Dollar's Decline
Central banks in Asia are intervening less to control their currencies.
This is partly because the US dollar has weakened, reducing the need for intervention.
Also, they are cautious about being labeled currency manipulators by the US during trade negotiations.
The Korean won, Malaysian ringgit, and Taiwan dollar are expected to increase in value.
However, not all countries are decreasing intervention, with some still working to control the value of their currencies.
Asian central banks are reducing currency intervention.
The US dollar has fallen over 7% this year.
Fear of US labeling as a currency manipulator is deterring intervention.
The Korean won and Malaysian ringgit are expected to appreciate.
Bank Indonesia and Philippines have taken different approaches to intervention.
- Who
- Central banks of countries like India, Malaysia, and Taiwan.
- What
- Asian central banks are reducing currency intervention.
- When
- As of June 2025.
- Where
- Asia.
- Why
- Due to the dollar's decline and the risk of being labeled a currency manipulator by the US.
Countries that will see their currency go up
Countries that may still intervene
Currency Appreciation vs Depreciation
Countries that will see their currency go up
Reduced intervention will speed up the appreciation of currencies like the Korean won and Malaysian ringgit.
Countries that may still intervene
Bank Indonesia intervened as the rupiah fell, while the Philippines sent mixed signals and continues intervention.
- US Dollar Decline
- Over 7% this year
- Taiwan Dollar Increase
- 10% against the dollar this year
- Korean Won Increase
- About 6% this year
- Malaysian Ringgit Increase
- More than 4% this year
- Published Date
- June 23, 2025