Asian foreign-exchange reserves are facing significant declines due to the economic fallout from the ongoing Iran conflict, which has driven oil prices higher. The Philippines has experienced the most substantial loss, with reserves falling 8.1% to $104 billion, while India has seen a 5.2% drop to $691 billion. Indonesia's reserves also decreased by 3.8% to $146 billion. These reductions are attributed to both spending to support local currencies and the decreased value of non-dollar holdings. Central banks across Asia are increasingly intervening in currency markets to mitigate the impact of soaring energy costs. For instance, India has raised import tariffs on gold and silver to defend its currency, while the Philippines has supported the peso through market interventions. The decline in reserves has resulted in a reduced 'import cover' ratio, with the Philippines dropping from 9.9 to 8.2 months of imports that can be paid for with reserves. Analysts expect that tightening monetary policies, including potential interest rate hikes, may be necessary to combat inflation and stabilize currencies in the region.