Strong dollar warning for emerging markets

Investor warn of low forex reserves to short-term external debt ratio


Eric Anderson, managing partner, Milltrust International
Emerging markets (EMs) have not always suffered in times of a relatively strong dollar. In fact, up to the end of August, EMs have done well this year. Some of our winners have come from EM-based companies exporting in US dollars. These businesses make their revenues in the US currency and pay their costs in local currencies, which is increasingly positive in times of a rising dollar. Manufacturing-intensive exporting countries such as Mexi