The latest edition of Fitch Ratings' Inside Credit newsletter features the fourth installment of our Global Perspectives series, focusing on falling emerging market FX reserves. Partial data for April suggests the steep decline in emerging market reserves is continuing, and remains widespread.

After reaching an all-time high of USD8.17 trillion in June 2014, emerging market official foreign exchange reserves hit have been falling steadily by an average of USD58 billion a month ever since. While most of this has been due to reductions in China and Russia, declines have occurred elsewhere. Total reserves have also been falling year on year from December 2014, with the cumulative yearly decline accelerating to USD385 billion in March 2015.

"There are few reasons to expect an imminent change to recent trends in China and Russia. Other EMs are still facing weak commodity prices - although with some stabilization in recent months - and the prospect of further adjustments in global capital flows when the U.S. eventually tightens monetary policy," says James McCormack, Global Head of Sovereigns.

Other topics covered in this week's edition of Inside Credit include:

- Record EMEA Corp Issuance Boosted by U.S. and HY Issuers

- U.S. Leveraged Loan Default Rate at New Low One Year Post-EFH

- Japan Megabanks' Overseas Operations Are Rising in Importance

- China Asset Securitization Potentially Positive for Banks

- Brazil's Budget Freeze Highlights Effort and Challenges

- Italian 'Bad Bank' Push Seems Credit Positive for Sector

- Why Is Tech Changing the Fan Experience?

- Register for Fitch's Global Banking Conference

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Fitch RatingsMedia Relations:Alyssa Castelli, New York, +1 212-908-0540Email: alyssa.castelli@fitchratings.com