 Almost all Asian central banks took action recently to slow the depreciation of their respective currencies  Apart from selling FX reserves, many central banks are also tightening monetary policies, which can help at the margin  Rapid currency depreciation can affect confidence, accelerate capital outflows, and raise inflation expectations All Asian currencies have weakened against the USD year-to-date. For the RMB and TWD, the corrections are occurring after significant outperformance in 2020-21, so their respective central banks appear to be relatively less concerned thus far. Even so, we do not underestimate the ability of the People’s Bank of China (PBoC) to take action, if the RMB continues to depreciate as rapidly as it did earlier.