IN EVERY EMERGING-MARKET crisis, the country in question has too much foreign currency debt. Indeed, if any country’s debts are in dollars while its revenues are in rapidly depreciating pesos, the end result is sadly predictable. And yet countries continue to issue tens of billions of dollars in foreign-currency bonds, just because they need the money and foreign investors have no interest in buying obligations denominated in pesos. All this is beginning to change, however.
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