Due to the higher rates set by the feds, many nations are opting to borrow in currencies with lower interest rates such as in renminbi or in Swiss francs. There’s also been a drastic increase in bond issuance in euros by companies in emerging markets this year, up to a record $239 billion as of July. How this will shape up in the long run, I do not know, however it seems a good opportunity for countries to diversify their external currency borrowing.
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Due to the higher rates set by the feds, many nations are opting to borrow in currencies with lower interest rates such as in renminbi or in Swiss francs. There’s also been a drastic increase in bond issuance in euros by companies in emerging markets this year, up to a record $239 billion as of July. How this will shape up in the long run, I do not know, however it seems a good opportunity for countries to diversify their external currency borrowing.