This page looks at various emerging market (EM) countries' currency movements, current account balance and level of reserve adequacy to cover foreign currency obligations. The orange bubbles represent Asian countries, while the grey bubbles represent EM ex-Asia countries. A larger bubble indicates a stronger foreign exchange reserves position, while a smaller bubble indicates a weaker one. The bubbles on the left of zero on the x-axis are countries that had a current account deficit in 2020, and the countries on the right of zero had a current account surplus. The higher the bubble's position on the y-axis, the larger the currency appreciation against the U.S. dollar. From this, we can attempt to gauge the EM countries' ability to withstand shocks from capital outflow. As we enter into a U.S. tightening cycle, healthier current account balances mean EM Asian economies are in a better shape to weather the tightening cycle compared to 2014.