Positive turn in capital flows to emerging markets

Dhaka,  Sat,  24 June 2017
Published : 20 Apr 2017, 17:43:21
printer

Positive turn in capital flows to emerging markets

Positive turn in capital flows to emerging markets
The recent data from the Institute of International Finance (IIF), an industry association, indicates a positive turn in capital flows to emerging markets (EMs) in February, for the first time since January 2015, a global media report said.

The report, quoting the Dutch investment house — NN Investment House whose figures were built on the IIF’s recent data, stated that EMs attracted a net $28.6bn of capital in the first quarter of 2017.

This, according to the report, is a sharp improvement on the $238bn that it says was shipped out of the developing world in the last three months of 2016.

The IIF’s data that have been based on the situation about balance of payments figures after stripping out the current account balance and also adjusting for changes in foreign exchange reserves in 20 countries, show modest net capital inflows in the case of China, in February and March, the first positive months since April 2014.

However, it witnessed an overall outflow of $8.5bn in the first three months of 2017, according to the report.

The EM capital inflows’ rebound has largely been driven by countries like Argentina, with net inflows of $17.5bn, India ($16bn), Brazil ($14.4bn), Mexico and Indonesia (both $9.0bn), Egypt ($8.0bn) and Turkey ($6.7bn), the report added.

Capital also flowed out of Russia during the first quarter as oil revenues continue to be recycled elsewhere, it noted.
ADDRESS
Editor : A.H.M Moazzem Hossain
Published by the Editor for International Publications Limited from Tropicana Tower (4th floor), 45, Topkhana Road, GPO Box : 2526 Dhaka- 1000 and printed by him from City Publishing House Ltd., 1 RK Mission Road, Dhaka-1000.
Telephone : PABX : 9553550 (Hunting), 9513814, 7172017 and 7172012 Fax : 880-2-9567049
Email : editor@thefinancialexpress-bd.com, fexpress68@gmail.com
Copyright © 2017. All rights reserved
Powered by : orangebdlogo
close