Deutsche Bank Launches New FX Indices to Track 21 EM Currencies

Deutsche Bank​ announced the launch of a new set of Foreign Exchange indices to track 21 Emerging Markets (EM) currencies, reflecting the growing importance of EM as an asset class.

The set of four new non-tradable foreign exchange indices were developed by Deutsche Bank's EM research team to help investors more comprehensively track performance of emerging markets currencies.

Wanna Know How to Reach Our Audience of Millions at Fazzaco?

Global Head of EM Research, Sameer Goel said, "Asia's economic growth, particularly China, is tipping the scales of economic influence and changing the investment landscape. In recent years, Emerging Markets fixed income assets (credit and currencies) have been growing in volume and prominence, therefore tracking EM FX performance has become more important than ever for investors in emerging markets."

Deutsche Bank EM strategist Oliver Harvey said, "The new indices track both spot and carry performance of 21 emerging market currencies, serving as a comprehensive set of barometers for EM investors tracking FX."

"We developed the new Deutsche Bank EM FX indices to better reflect the growth and development of EM fixed income. The indices capture a much wider currency universe, 21 currencies in total. Indices also reflect transparent and dynamic weights, and both spot and carry performance, since carry is a significant trading strategy for EM investors," added Harvey.

Available on Bloomberg terminals, the non-tradeable indices were designed to track EM currency performance. The indices build on existing EM FX indices in four ways: 1) reflect a wider universe (21 currencies); 2) apply relevant and transparent weights; 3) shift weight dynamically over time (3 years), and 4) capture both spot and total return performance.