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May 15, 2018

Argentina crisis could be 'tip of the iceberg' for other emerging economies - May 15, 2018. | Business | The Telegraph

telegraph.co.uk

Argentina crisis could be 'tip of the iceberg' for other emerging economies


The dramatic events in Argentina may be the “tip of the iceberg” of a broader systemic crisis across Asia, Latin America, and Africa, the top emerging market watchdog has warned.
The Institute of International Finance said powerful contractionary forces are coming to bear as the US Federal Reserve tightens monetary policy, draining dollar liquidity and lifting borrowing costs for much of the world economy.
“Rising global interest rates beg the question whether Argentina is an idiosyncratic case or a harbinger of things to come. We worry it might be the latter,” said Robin Brooks, the IIF’s chief economist.
What has raised alarm bells is the 5.5pc rise in the US dollar index (DXY) since mid-February,...