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Emerging Markets Capital Flows Monitor (Jun. 2023)

Inflows into EM financial markets have held up well over the past few weeks, with particularly strong inflows into local equities. That said, if we are right that a renewed period of global risk aversion lies in store, we suspect that these inflows will slow. That’s a particular risk for EMs with large current account deficits – Colombia and Romania are two countries that stand out as causes for concern.

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