ECB warns on further Asian reserves build-up

The ECB said in a paper published Wednesday 8 March that a further build-up of foreign exchange reserves in Asia could lead to problems such as inflation pressures and asset price bubbles.

'Continued reserve accumulation may over time entail some risks and costs, such as inflationary pressure, overinvestment, asset bubbles (and) complications in the management of monetary policy,' the ECB said in a paper on the build-up of global foreign reserves.

World foreign exchange reserves grew to 4.0 trln

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