Whither Emerging Markets Foreign Exchange Reserves

Whither Emerging Markets Foreign Exchange Reserves

After a exponential rise in foreign exchange reserves accumulation by emerging markets from 2000 onwards, the tide seems to have turned south since mid-2014. Changes in capital flows and commodity prices have been major factors behind the inflection, with the new direction expected to remain, given the context of the global economy going forward. Although […]

Foreign Direct Investment in Latin America Holds Steady in 2013

In 2013, foreign direct investment (FDI) in Latin America reached $185 billion according to the latest ECLAC report, continuing the slight upward trend of the last three years. Brazil maintained its number one position as the largest FDI destination, raking in $64 billion (over one third of all regional FDI). Mexico came in second, with some […]

QE Tapering as a Wake-up Call for Emerging Markets

Summer was marked by a strong pressure of capital outflows and exchange rate devaluations in several systemically relevant emerging markets. A global portfolio rebalancing was put in motion on May 22, when talk of the U.S. Federal Reserve shrinking — and eventually reversing — its asset purchase program (QE or quantitative easing) was made public. […]

The New Economic Nationalism, Part 2: The New Great Game

Commentators often assume that relatively unfettered trade in goods and services and free movement of capital are givens, but the drive toward greater economic openness could now be undergoing a reversal, with profound implications for the global economy. This piece, picking up from where Part 1 left off, looks how different countries may adapt to this […]

BIS: Daily FX Turnover Averages $5.3 Trillion

The Economist drew from the latest survey of the Bank of International Settlements to create this Great Graphic that shows the average daily turnover of the top 16 currencies.   Source: The Economist Average daily turnover is a mind-numbing $5.3 trillion.  In three days foreign exchange turnover is sufficient to cover world trade in a year. The BIS conducts the survey […]

The New Economic Nationalism, Part 1: A ‘Juche’ World

Commentators often assume that relatively unfettered trade in goods and services and free movement of capital are givens, but the drive toward greater economic openness could now be undergoing a reversal, with profound implications for the global economy. This piece, the first of a two-part series, looks at the drivers of this shift. Globalization reached […]

Not With a Bang but a Whimper: The SEC Enforcement Team’s Propaganda Campaign

The New York Times has one of those “inside” stories that unintentionally demonstrate the collapse of justice and financial reporting.  This genre involves the media reporting gravely (and uncritically) the administration’s claims that its failure to prosecute any elite for the largest and most destructive financial frauds in history actually demonstrates the exceptional ethical rectitude of the […]