Emerging economies burn through $240 billion in reserves, including Egypt

Leading emerging countries have burned through $240 billion in foreign exchange reserves over the past two months including Egypt and Turkey, Bank of America said on Monday, as central banks look to prop up their currencies and economies in the face of coronavirus.

Turkey and Egypt had seen particularly large percentage declines, it added. Turkey and Romania also stood out as their official reserves did not fully cover short-term external debt over 12 months, the note said.

The drain was likely to continue albeit at a slower pace, Bank of America added in a note citing reserves data for 31 states.

China, Hong Kong, Saudi Arabia, Brazil and Turkey had all seen the biggest total drop in reserves, the bank said.