Asia's foreign exchange reserves have increased to $8 trillion, ensuring a steady supply of bullets to defend its own currency.

Asia's foreign exchange reserves have soared to nearly $8 trillion, providing ample ammunition for governments from Tokyo to Mumbai to strengthen the defense of their currencies when needed. Data shows that this year, foreign exchange reserves of major central banks in the region have increased by more than $400 billion, with 11 large currency authorities currently holding close to $8 trillion in foreign exchange reserves. The decline of the US dollar this year and the rise in gold prices have driven the increase in foreign exchange reserves. Wee Khoon Chong, macro strategist for the New York bank in Hong Kong, said that the foreign exchange reserves of countries in the Asia-Pacific region are sufficient. Currently, the import coverage ratio of countries in the region is at a very favorable level.