About this work
Pandemic import compression changed emerging market current accounts and the exchange rates consistent with external balance. The July 2020 valuation update identified the Brazilian real as the most undervalued emerging market currency and the South African rand as close to fair value. Turkey’s prospective return to a substantial current account deficit, by contrast, pushed the lira into overvaluation in the assessment.
Abstract
Pandemic import compression changed emerging market current accounts and the exchange rates consistent with external balance. The July 2020 valuation update identified the Brazilian real as the most undervalued emerging market currency and the South African rand as close to fair value. Turkey’s prospective return to a substantial current account deficit, by contrast, pushed the lira into overvaluation in the assessment.
Cite this work
Garbis Iradian, Jonathan Fortun, Robin Brooks, Ugras Ulku (2020). GMV: Exchange Rate Valuations after the Storm. Institute of International Finance.