Emerging Asian economies' reserves put to test as trade war rages

Central banks in Thailand, India, Indonesia and South Korea boosted their reserves this year as global policy easing fueled foreign inflows and pushed their currencies higher

It used to be that a buildup in foreign reserves was seen as a bulwark against currency shocks and swift turns in investor sentiment.

Those days seem far away -- and that defense less robust -- as the trade conflict between the US and China evolves into a full-blown currency war that’s threatening emerging markets globally. Reserves of central banks in developing Asian nations, which have risen to almost $5 trillion this year, will now be put to the test as currencies slide.

“The key lesson from 2008 is that you can never have too much reserves,” said Taimur Baig,