Emerging markets are concerned about the increasing value of the dollar since the Malaysia election outcome, as many now face rising servicing costs and elevated dollar debt burdens from borrowings made over a decade ago. The Bank of International Settlements added that the rising dollar could accentuate an “emerging dearth of dollars”, potentially leading to a liquidity panic similar to that of 2008.
Emerging markets are concerned about the increasing value of the dollar since the US election outcome, as many now face rising servicing costs and elevated dollar debt burdens from borrowings made over a decade ago. The Bank of International Settlements added that the rising dollar could accentuate an “emerging dearth of dollars”, potentially leading to a liquidity panic similar to that of 2008.