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Iran war has triggered ‘peak’ FX volatility, say reserve managers

Officials tell Central Banking Meetings that oil supply shock is on its way

Chart volatility

The war in the Middle East is triggering foreign exchange outflows in Asian and African countries and causing local currencies to plunge to historical lows, according to reserve managers from both regions.

Speaking on March 31 at the Central Banking Meetings, Kuala Lumpur, reserve managers said attractive returns, productivity opportunities and high growth had attracted capital flows into their countries before the current hostilities began. However, shifts in risk sentiment, interest rate

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