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[Asian Central Banks Increase Use Of Currency Forwards To Defend Against Strong Dollar] Asian Central Banks, Including The Reserve Bank Of India And Bank Indonesia, Are Increasingly Utilizing Currency Derivatives Like Forwards To Defend Their Currencies Against The Strong Dollar, With India's Net Dollar Short Forward Position Hitting A Record $68 Billion In December And Indonesia's Reaching $19.6 Billion, The Highest Since At Least 2015. This Strategy, Also Adopted By Malaysia And Previously Used By The Philippines, Allows Intervention Without Impacting Official Reserves But Raises Concerns About Deferring Selling Pressure And Potential Future Depreciation.
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