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Three More Countries at Risk of Currency Crisis in 2023, Nomura Says

A currency exchange employee counts 1000 Czech koruna notes.

A currency exchange employee counts 1000 Czech koruna notes.

Photographer: Vladimir Weiss/Bloomberg

The Czech Republic, Romania and Hungary face the risk of exchange-rate crises over the next one year as fiscal and external challenges mount, according to Nomura Holdings Inc.

The warning is based on analysis of eight indicators including FX reserves import cover, real short-term interest rates, as well as fiscal and current account measures, according to Nomura’s Damocles Index which assessed 32 emerging markets’ vulnerability to a currency crisis.