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Assessing the fallout from the EM currency slump

Most EM currencies have weakened substantially against the US dollar this year. For a few EMs with large dollar debts, such as Turkey, this could lead to financial strains. And the impact of currency weakness on inflation may cause headaches for policymakers in a few more economies. But at an aggregate level the macroeconomic impact of the latest currency moves is likely to be fairly small.

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