BIS article notes changing effects of dollar weakness on EMEs
Investment channel likely to become more important countervailing force, authors say
A weaker dollar may no longer be an unambiguous sign of easier financial conditions in emerging market economies (EMEs), analysis by economists at the Bank for International Settlements finds.
The bulletin article, published on October 13, explores the several channels through which dollar weakness in 2025 has affected EMEs.
Some of the channels produce easier financial conditions, as documented in past BIS research. Notably, a weaker greenback reduces the value of dollar debts held outside the US
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