Elekdag, Selim, Gelos, Gaston, (2015), “Emerging Market Corporate Debt in Foreign Currencies”, IMF Direct, 1 Οκτωβρίου
Debt held by firms in emerging market economies in a currency other than their own poses extra complications these days. When the U.S. Fed does eventually raise interest rates, the accompanying further strengthening of the U.S. dollar will mean an emerging market’s own currency will depreciate against the higher value of the U.S. dollar, and would make it increasingly difficult for firms to service their foreign currency-denominated debts if they have not been properly hedged
Σχετικές Αναρτήσεις
- Pasricha, Gurnain, Falagiarda, Matteo, Bijsterbosch, Martin, Aizenman, Joshua, (2015), “Domestic and multilateral effects of capital controls in emerging markets”, ECB Working Paper, No. 1844, August
- IMF/World Economic Outlook-July 2015