The IIF covers 30-40 emerging and frontier markets, with a particular focus on economic and financing issues. Our reports feature topical analysis of macroeconomic fundamentals, policy developments, political economy dynamics and downside risks.
The EM sell-off was quite intense in recent months, with major currencies in Asia depreciating significantly. We assess if this is a signal of systemic risk in the region, comparing external risk metrics in the 1997 crisis vs. now. Vulnerability is an order of magnitude lower today. Financing needs are much lower and reserves higher.