Canada Global (Web News) Other countries including Pakistan are at 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 said 22 of the 32 countries covered by its domestic “Damocles” warning system had seen their risk increase since its last update in May, with the Czech Republic and Brazil the most. has increased.
This means that the sum of the scores produced by the model on all 32 has risen sharply to 2,234 from 1,744 since May. This is the highest total score since July 1999 and not far from the peak of 2,692 during the height of the Asian crisis,” Nomura economists said, calling it “a dire warning sign of growing broad-based risk in EM currencies.” 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.
