LATAM'S TROUBLES COME IN THREES

摘要

Emerging markets are going through tumultuous times, as the tapering of the US Federal Reserve's quantitative easing programme has exposed countries that have been overly reliant on portfolio flows - or 'hot money' - to fund their current accounts. Lower levels of global liquidity along with better growth prospects and higher interest rates in the developed world have provoked an emerging markets sell-off. The currencies of developing countries have plummeted along with bond prices and stocks. In the two weeks to February 7, 2014, investors removed $12bn from developing country equities, as reported by Bloomberg.