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EMs see the 'dark side' of foreign investments

Emerging economies with weak fundamentals could face an exodus of funds

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Besieged: A Turkish man checks foreign exchange rates in Istanbul. Turkey is buckling under pressure from foreign investors to ramp up growth, stabilise its currency and maintain interest rates. - PHOTO: AFP

[NEW YORK] IT is no fun to be a central banker in an emerging-market country when investors suddenly grow doubtful. If you don't do what the foreign investors say you should do, your currency and your markets will be punished. And if you do what you are told, well, they could be punished anyway