Turkish Lira and Czech Koruna at Risk in Next 12 Months, Nomura Warns
- Sri Lanka and Romania are also vulnerable, Nomura says
- Investors could be paying more attention to EM risks
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Turkey, the Czech Republic, Sri Lanka and Romania are at risk of currency crises over the next 12 months, according to a Nomura Holdings Inc. gauge that has predicted past selloffs.
Each of the countries scored above 100 on the bank’s “Damocles” gauge, a signal that they’re vulnerable to a currency meltdown. Its model pools eight indicators that helped forecast 64% of the 61 emerging-market currency crises since 1996, the Tokyo-based firm said.