Foreign‑exchange reserves across Asia are falling sharply as governments spend to shore up their currencies against rising oil prices triggered by the Iran war. The Philippines has seen the steepest decline, with its reserve stockpile dropping 8.1% to $104 billion since the conflict began.

India follows, reporting a 5.2% reduction to $691 billion, while Indonesia has slipped 3.8% to $146 billion. Bloomberg’s data show that the losses stem from both defense spending against currency depreciation and a fall in the value of non‑dollar assets.

The trend signals a broader regional strain, as oil price volatility erodes confidence in local monetary systems. Central banks are forced to allocate reserves to purchase foreign currency, depleting the buffer that could otherwise absorb shocks. The situation underscores the interconnectedness of geopolitical events and financial stability in emerging markets.

With the war’s impact lingering, Asian authorities may need to reassess their reserve strategies and consider diversification to mitigate future disruptions.