As most are aware, emerging markets have suffered as of late which reflects in their currencies (with the exception of the Chinese Yuan). I don’t know how many of you trade emerging market currencies or even have access to them, but what do you think about them?
The Indian Rupee seems one of the hardest hit currencies and as in the western, developed world the central bank has no clue what they are doing which only adds to the problem. Investors neither trust the central bank nor the government which means they are pricing in a heavy recession. One of the analysts over at Paxforex wrote an interesting piece about emerging markets currencies and how Chinese banks are masking risky loans.
Do you think it is only a matter of time until bigger cracks will appear in China?