Japan, the "carry trade", and the economies of Latin America.
Carry trade and triple arbitrage impact emerging countries due to the difference in interest rates. The interest rate differential between developed and emerging countries such as Mexico, Brazil and Colombia has increased the flow of capital into the financial markets of these countries, which provides more liquidity and public financing. However, it increases the vulnerability of emerging economies to global volatility, as in the case of Japan in August 2024. This article will examine how the Bank of Japan's (BoJ) interest rate hike affected exchange rates in these countries.
Autor:
Palabras clave:
