Our tracking estimate (based on currently available data) suggests spot FX sales/intervention by EM central banks to the tune of $56bn in March. We expect this could be revised higher with more data given...

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...we also saw a record $87bn in EM portfolio outflows on the month. One aspect of central bank FX sales/intervention that is often misunderstood are rebalancing flows - that is, when reserve managers sell one currency, say USD, to defend a USD cross but then also have to sell...

...other (non-USD) reserve currencies to avoid their currency portfolio weights from passivley "drifting." We estimate that such rebalancing flows drove $35bn in EUR sales in March.