About this work
Real effective exchange rates can reveal conspicuous currency misalignments even before applying a full current account model. The January 2024 review uses this perspective to examine emerging market valuations and highlights Egypt, Pakistan and Ukraine as potential cases of overvaluation. It presents a diagnostic assessment rather than a prediction of when an adjustment would occur.
Abstract
Real effective exchange rates can reveal conspicuous currency misalignments even before applying a full current account model. The January 2024 review uses this perspective to examine emerging market valuations and highlights Egypt, Pakistan and Ukraine as potential cases of overvaluation. It presents a diagnostic assessment rather than a prediction of when an adjustment would occur.
Cite this work
Robin Brooks, Jonathan Fortun (2024). Global Macro Views: EM FX Overvaluations. Institute of International Finance.