Examining Currency Risk in Emerging Markets

The video discusses the influence of currency exchange rates on risks faced by dollar-based investors in emerging markets. It highlights the significant role of FX in emerging market local debts and equities. The discussion includes strategies for managing foreign exchange volatility, such as hedging or avoiding currency risk altogether. The video also touches on the historical context of currency risk and the effectiveness of derivative strategies over different time periods.

What historical period is mentioned where currency risk was overlooked in emerging markets?

What is the potential impact of being unhedged during a significant currency move?