Currency crisis warning for seven countries: Turkey among them – WORLD

highest level since 1999

While Nomura economists described this overall score as “a catastrophic harbinger of heightened overall risk for emerging market currencies”, “not only is this the highest overall score since June 1999, but it is far from the peak of 2692 seen during the worst period Asian crisis. No,” he said. A risk warning system called Damocles, based on eight indicators of countries’ foreign exchange reserves, exchange rates, financial outlook and interest rates, gives a 64 percent chance of facing a currency crisis within a month.

The highest score in Egypt

While Turkey and Sri Lanka scored 138, Egypt had the highest score with 165. Egypt’s currency has depreciated sharply twice this year, the government has turned to the International Monetary Fund (IMF).