Which emerging markets are in the firing line?

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Turkey has suffered sharp depreciations in its currency in recent months, but not all emerging markets are as vulnerable

Investors in emerging markets have been taking flight in the past few weeks, with the majority of pressure focused on Argentina and Turkey. Some contagion has spread to a handful of others, but not all emerging markets are equally vulnerable.

Key indicators of weakness include high government debts, particularly those denominated in foreign currencies, and wide current account deficits. Both Argentina and Turkey had wide current account deficits, and both are highly reliant on foreign financing

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