Candidates For Currency Woes

The next Mexico? Take your pick

Although investors became a bit disillusioned with emerging economies after the Mexican peso's crash in late 1994, the huge profit opportunities offered by such markets have inevitably attracted fresh flows of investment funds. Yet as Nariman Behravesh of DRI/McGraw-Hill observes, the risks of investing in emerging markets haven't disappeared. "Poor economic policies or political instability," he says, "can still precipitate a sudden currency decline."

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