Outflow reversed: The Federal Reserve building in Washington. The Fed and other central banks have done well to reverse the near-catastrophic outflows of capital from EMs that were visible in the early weeks of the pandemic. — AFP
JUDGING by the performance of emerging markets (EMs), you’d hardly know the world was suffering from a deadly pandemic.
After a horrible March, according to the Institute for International Finance, non-resident portfolio flows into EMs increased tenfold to US$32.9bil in June. MSCI’s EM currency index hit a one-month high last Thursday. Even currencies as weak as the South African rand are seeing a bit of a rally.
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