FX intervention diverged between Northeast and South/Southeast Asia in August

We estimate Northeast Asia central banks accumulated FX reserves in August, while South/Southeast Asia (except BOT) drew down on their FXR. In India, we estimate the RBI net sold FX reserves in August, composed of a net accumulation of spot FXR and an estimated increase in the net short FX forward book owing to inflows from the RBI's concessional swap facilities; we continue to believe the RBI will be cautious in drawing down its spot FX reserves, while accumulating USD when conditions allow. In Korea, we estimate the BOK net accumulated a significant amount of spot FXR, and we believe Korean authorities are now becoming more concerned over KRW appreciation. In China, we estimate the PBoC net bought a small amount of FXR, with state banks accumulating FX deposits in August, likely to slow the pace of RMB appreciation. In Taiwan, we estimate the CBC net bought FXR, though Taiwan remains on the US Treasury's FX monitoring list, which could limit the CBC's inclination to purchase USD.