Latin America's direct exposure to SVB and Credit Suisse is limited, but the turmoil is still likely to have indirect effects on the region. To the extent that growth in the US is weaker, Mexican exports are likely to suffer, while lower commodity prices will weigh on export revenues across Latin America. Were strains in the global banking sector to escalate and capital flows dried up, Colombia and Chile look most vulnerable and their central banks could be forced to extend or resume tightening cycles.
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