Canada Global (Web News) Other countries including Pakistan are at high risk of currency crisis
Nomura has warned that seven countries, Pakistan, Egypt, Romania, Sri Lanka, Turkey, the Czech Republic and Hungary are now at high risk of a currency crisis.
The Bank of Japan reported that danger has risen in 22 of the 32 nations covered by its domestic “Damocles” warning system since its last update in May, with the Czech Republic and Brazil experiencing the greatest rise.
The Nomura economists referred to this total score as “a grim warning sign of mounting broad-based risk in EM currencies” and noted that it had reached its highest level since July 1999 and was not far from its peak of 2,692 during the height of the Asian crisis. gave
The model reduces eight key indicators on a country’s FX reserves, exchange rate, fiscal health and interest rates to give an overall score.