Time to worry about a foreign currency debt crisis in Asia?

The sharp rise in the US dollar since Donald Trump’s election victory has led to renewed concerns over the rapid build-up in foreign currency (FX) debt in Emerging Asia. For most countries, FX debt burdens are relatively low and currency weakness is not a major threat. But for Indonesia and Malaysia, where FX debt is much higher, the threat of further currency weakness will reduce policymakers’ room to cut interest rates and stimulate growth.