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 .
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, protracted 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; Nigeria, Azerbaijan and Saudi Arabia are notable examples. Anderson also points out that economic stress in commodity 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.