Falling oil and other commodity prices have increased the risk of capital controls for multi - nationals doing business in emerging markets . A division of a U.S. company can find it near impossible to convert a local currency to U.S. dollars. These restrictions affect international suppliers and lenders in a number of ways , including delays and customer payment defaults . Credit & Political Risk 's David Anderson points out that since many emerging markets depend on high commodity prices , these price falls put pressure on foreign exchange ( FX ) reserves , which are crucial to allow governments to intervene in FX markets in currency fluctuations , maintain the value of current accounts and absorb foreign economic shocks . In the present situation , the most popular tactic among impacted emerging markets has been to resort to capital controls ; Iran , Azerbaijan and Saudi Arabia are notable examples . Anderson also points out that economic stress in many export - dependent firms can develop into political stress : " we 've been in prolonged commodity price dips before and there were major political events that came out of them " warns Anderson .
Falling oil and other commodity prices have increased the risk of capital controls for multi - nationals doing business in emerging markets . These restrictions affect international suppliers and lenders in a number of ways , including delays and customer payment defaults . Credit & Political Risk 's David Anderson points out that since many emerging markets depend on high commodity prices , these price falls put pressure on foreign exchange ( FX ) reserves , which are crucial to allow governments to intervene in FX markets in currency fluctuations , maintain the value of current accounts and absorb foreign economic shocks . In the present situation , the most popular tactic among impacted emerging markets has been to resort to capital controls ; Iran , Azerbaijan and Saudi Arabia are notable examples . Anderson also points out that economic stress in many export - dependent firms can develop into political stress : " we 've been in prolonged commodity price dips before and there were major political events that came out of them " warns Anderson .