World Bank: Southeast Asia faces more currency risk than rest of region

In its latest growth outlook report, World Bank underscored concerns over the Southeast Asian economies, as they face more currency risk than rest of the region.

Key Points (via Bloomberg):

Malaysia, and to a lesser degree Indonesia, Thailand and the Philippines, remain more exposed to exchange rate risk than other developing economies in East Asia and the Pacific as global financial conditions tighten

Companies and banks in these countries have sizable external debt, although foreign exchange reserves currently appear adequate

Sudhir Shetty, chief economist for the World Bank’s East Asia and Pacific region, said in an interview with Bloomberg TV: “What policy makers need to do is not be lulled by the fact that it’s been a good period for the global economy.”