El-Erian: Emerging-Market Currencies Attractive

The video discusses the Bloomberg and DXY Index, highlighting the weakening of currencies in emerging markets and the potential for a currency crisis. It explores the effects of currency depreciation on inflation and capital outflows, particularly in countries like Turkey, Mexico, and China. The issue of currency mismatch in the corporate sector is examined, emphasizing the risks of borrowing in dollars while earning in local currency. Central banks' interventions to counter excessive depreciation are noted. Finally, investment strategies for 2017 are suggested, focusing on the volatility in foreign exchange markets.

What is the significance of currency mismatch in the corporate sector?

What considerations should be made when investing in foreign exchange in emerging markets?