FXStreet (Guatemala) - François Faure, analyst at BNP Paribas explained that since early August, the emerging countries have been in the hot seat again.
Key Quotes:
"China’s surprise 3% devaluation of the renminbi on 11 August triggered pressures on exchange rates and risk premiums."
"Growing concern about the risk of a hard landing in China has strengthened the dollar’s appreciation –which has gained against all currencies since mid-2014 - and increased downward pressure on commodity prices."
"The conjunction of these three factors (China’s slowdown, the dollar’s appreciation and lower commodity prices) will continue to strain growth and the financial solvency of non-financial companies, mainly in the commodity exporting countries."
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