Strong Dollar, Weakened World

Emerging markets have borrowed a lot in dollars. Now those debts are getting harder to pay back.

A whole lotta borrowing going on.

Source: Bloomberg

Back when the U.S. Federal Reserve was doing whatever it could to keep credit flowing, companies and governments in emerging markets went on a borrowing spree in dollars. Now, with the Fed changing course and the U.S. currency rising, all that dollar-denominated debt is becoming one of the weakest links in the global financial system.

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