EM debt concern may be overblown

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.