Most EM currencies have weakened substantially against the US dollar this year. For a few EMs with large dollar debts, such as Turkey, this could lead to financial strains. And the impact of currency weakness on inflation may cause headaches for policymakers in a few more economies. But at an aggregate level the macroeconomic impact of the latest currency moves is likely to be fairly small.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.