EM Currencies Drop as Turkey Contagion Spreads

The transcript discusses the decline of the South African rand, influenced by both global and local factors. Global factors include its status as a liquid emerging market currency, making it vulnerable to risk sentiment. Local factors involve political risks and a current account deficit. The South African Central Bank is unlikely to intervene in currency markets due to limited reserves, contrasting with actions seen in Turkey and Indonesia.

What are the implications of the current accounts deficit mentioned in the text?

In what ways do the economic situations of Turkey and South Africa differ according to the text?