Southeast Asian countries with weak or disconnected foreign exchange and derivatives markets need to make investing easier for foreigners if they are to deepen their local currency bond markets, according to a study of 13 East and Southeast Asian countries by the Asian Development Bank.
The report on cross-border investors' ability to use foreign exchange derivatives such as forwards, swaps and cross-currency swaps -- used to manage exposure to foreign exchange risks -- is part of the ADB's efforts to support cross-border investments in local currency bonds under the ASEAN+3 Asian Bond Market Initiative.
