The Collaborative Market Data Network -
serving the Public interest of Transparency in Debt Capital Markets
The Collaborative Market Data Network
Serving Transparency in Capital Markets
The Collaborative
Market Data Network


Post Date: 22 May 2023

Currency mismatches are detrimental to hard-currency borrowers in frontier markets, as sudden and steep
depreciations of their local currencies are overly common, resulting in ballooning debt in local-currency terms. This dynamic is reflected in today’s frontier-market debt crisis that is to a large extent the result of a stronger US dollar and rising interest rates. Exchange-rate risk hedging solutions are needed to protect borrowers and lenders, but these are absent for frontier markets.

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