Weekend Reading /
Global

Why emerging market currencies are undervalued, according to the IMF

  • IMF sees cyclical rise in external imbalances in 2020, mainly in DM, driven by fiscal stimulus and Covid-related factors

  • USD is estimated to be c5% overvalued, along with the SAR and ZAR among major EM; most EM currencies are undervalued

  • Most undervalued EM currencies (in order) include MXN, TRY, PLN, MYR, RUB, BRL, INR, THB, and IDR

Why emerging market currencies are undervalued, according to the IMF
Patrick Curran
Tellimer Research
7 August 2021
Published by