EM debt concern may be overblown
Corporate issuers may get revenue from exports as they borrow abroad amid rising dollar
New York
AS THE US dollar soars month after month, the chorus of voices expressing concern about how it will imperil emerging-market companies that borrowed abroad is growing.
India central bank governor Raghuram Rajan said in February that such borrowing is akin to playing Russian roulette. A few months earlier, the Bank for International Settlements labelled it a "possible source of vulnerability" because the stronger dollar requires borrowers in developing nations to scrounge up more local currency to repay their debts.
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