What happens when suddenly one euro or one pound falls dramatically vs KES? It happened last year to the euro and the net effect was a sagging NSE, which lingers to date. If one pound sinks below KES 100 handle what happens to the portfolio in pounds in a sagging market?
These wild currency moves will shatter EM markets as the same foreign currencies bleed vs the local currency while the USD strangles everyone as it sharply inflates in value.
This is an outlier liquidity vacuum event! Mattress banks will return with a bang!
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!