How Does Oil's Collapse Impact Emerging Markets?

The video discusses the financial challenges faced by emerging markets due to a decline in liquidity and the impact of oil prices. It highlights the role of foreign exchange flexibility in helping these markets stabilize their balance sheets. The discussion also covers the varying effects of FX on commodity exporters and importers, with a focus on countries like India and Turkey.

What is the significance of FX flexibility for emerging market sovereigns?

How do commodity exporting and importing countries differ in their response to FX weakness?