Ringgit, Rupiah Are Southeast Asia's Most Volatile

The video discusses the significant influx of foreign investments into emerging market (EM) currencies, particularly focusing on Indonesian and Malaysian sovereign bonds. It highlights the risks associated with high foreign holdings, especially during economic shocks, which can lead to sudden market outflows. The potential impact of a Trump presidency on Asian currencies is analyzed, drawing parallels to past events like the 2013 quantitative easing wind-down, which caused sharp outflows and currency depreciation.

What has been the trend in foreign holdings of Indonesian sovereign bonds over the last decade?

What risks are associated with the increasing foreign ownership of sovereign bond markets in Indonesia and Malaysia?

What potential effects could a Trump presidency have on the currencies of Malaysia and Indonesia?

How did the market react to the announcement of winding down quantitative easing in May 2013?

What was the percentage drop of the RUPIA in the year following the external shock in 2013?