-
Emerging market turmoil may bring forex controls back on radar
The coronavirus pandemic and oil price collapse have made emerging markets a lightning rod for volatile capital flows, raising the question whether currency controls might creep back on the radar of some of the worst-hit countries. Ever since the 1998 crisis, most big developing countries have accepted that the value of currencies is best determined by markets, a thesis that served them well over the years when exchange rate depreciation allowed their economies to adjust to changed circumstances. But that wisdom has been thrown into sharp relief in recent weeks as a global market rout saw investors liquidate assets ... (full story)