This is part of a larger trend where EM policymakers are forced to innovate as higher-for-longer US rates and Middle East conflicts keep pressure on their currencies. Such measures often lead to capital controls or indirect interventions, which can reduce global liquidity and increase volatility. For crypto, this reinforces the current macro headwind of a strong dollar and tight financial conditions, which have historically correlated with lower risk appetite.

US Dollar

Central banks in emerging Asia are adopting new methods to support their currencies without using foreign-exchange reserves.