Asian central banks shift bond funds towards local currency debt
Funds launched in 2000s to be rebalanced towards local currency debt in East Asia-Pacific
A host of East Asia-Pacific central banks are committing more resources to a local currency bond fund, it emerged today (July 1). They are attempting to boost market development in the region.
More than a decade ago, 11 central banks and monetary authorities launched an "Asian Bond Fund initiative". This saw them buying regional debt denominated in both US dollars and local currencies.
A dollar-denominated fund (ABF1) was created in 2003 with an initial size of $1 billion. It has been used to
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