FYI: Powell, IMF anticipated emerging-markets inflows would slow.
Powell was discussing what would happen as the Federal Reserve normalized interest rates. The concern, he outlined in Oct. 2017, was that higher interest rates as well as a weakening emerging-market currencies could cause capital to return to advanced economies. The fact that emerging-market debt is often denominated in dollars and other foreign currencies exacerbates the issue.
Ten months later, there is some signs that emerging markets aren’t so orderly. Turkey's lira USDTRY, +14.5365% has plummeted 38% this year, including 10% on Friday, as President Recep Tayyip Erdogan has turned to his son-in-law to run a central bank he’s bashed in public repeatedly and has called for his citizens to swap dollars and gold for the domestic currency.
Regards,
Ted
https://www.marketwatch.com/story/how-much-of-the-emerging-market-carnage-can-be-blamed-on-the-fed-and-the-dollar-2018-08-10/print
