The difficulties for emerging markets have entered a new phase. What were once clearly country-specific crises, well contained within their borders, are bleeding across the world.
Mind The Pivot To QT: Why Emerging Market Sell-Off Looks Contagious
To stem the slide in its currency Argentina raised its key rate to a whopping 60 percent on Thursday, but the peso was still 30 percent weaker from Monday. Though Turkey is no closer to solving its many problems, it’s hard to see why the lira needed to fall 4 percent on Thursday. Explanations that this is due to the resignation of one of the central bank’s four deputy governors don’t convince — he’s only gone to take another government job.