The Devaluation Run in Emerging Markets Is Just Getting Started
- Indebted frontier nations need devaluations for IMF funding
- Argentina, Bangladesh, Nigeria seen likely to devalue next
This article is for subscribers only.
A fresh round of IMF bailouts is under way, and some of the world’s most indebted nations will have to sacrifice their currencies to get them.
The year has already seen three debt-laden countries — Egypt, Pakistan and Lebanon — drop their exchange rates to unlock International Monetary Fund assistance. That may be just the beginning. With at least two dozen nations queuing up before the Fund for rescue packages, currency traders are bracing for a potential fresh wave of devaluations in the developing world.