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Monday, February 23, 2026
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Miles Eakers, Chief Market Analyst at FX and payments specialist Centtrip

Emerging markets are facing a crisis. Unless action is taken, like a house of cards, they could all fall together

The Argentinian central bank was forced to raise interest rates again yesterday by 15 percentage points up to 60 per cent. The Peso is already down almost 30 per cent against the US Dollar this week as the emerging market crisis deepens. Turkey’s Lira is down more than 12 per cent and South Africa’s Rand having fallen more than 5 per cent against the greenback.

Monetary policy tightening by the Federal Reserve is squeezing the global flow of Dollar’s which in turn is putting pressure on EM currencies. Like a house of cards the contagion is spreading. Elections in Brazil in October is the next big risk event that could cause the Brazilian Real to weaken substantially and follow a similar path to the Peso.

Unless a co-ordinated plan is implemented I fear this is just the beginning of an emerging market funding crisis and a continued devaluing of their currencies.

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