Portfolio flows to EM stood at $1.1 bn in January. Equity and debt flows were -$3.4 bn and $4.5 bn. China equity posted $0.2 bn in inflows. ...

Last week we reviewed the global recovery from COVID, … noting that that the US has outperformed the rest of the world, …  with...

Growth will moderate in 2022 and inflationary pressures could start to ease in 2022H2 as global food inflation moderates and central banks in the region maintain their tight policy stance. Higher energy prices will improve the external and fiscal balances in Azerbaijan, Kazakhstan, and Turkmenistan.

Disconnection from global payments systems is increasingly proposed as a "nuclear option". In response to sanctions, Russia has developed domestic payments and messaging systems. But limited international connectivity means cross-border transactions remain challenging.

The January 2022 edition of the Insurance Update provides targeted updates on IIF insurance activities and events.

Chile’s economy overheated due to expansionary fiscal policy. Both fiscal and monetary policies are turning contractionary, … Budgeted spending cu...

The IIF Sustainable Finance Monitor covers key developments in the global sustainable finance agenda. In the January 2022 issue, we discuss our sustainable finance agenda for 2022 as well as policy and regulatory updates, and a market snapshot on greenflation.

This note explains the interest rate tools at PBoC’s disposal and China’s interest rate transmission mechanism.

Upside inflation surprises have prompted rate hikes by CEEMEA central banks. We project demand pressures to remain benign despite the ongoing recovery. Even so, markets are pricing further aggressive rate hikes in the coming months. Rising inflation has pushed up long-term bond yields across the region in ‘21H2. Wider term premiums reflect higher credit risk spreads in Turkey and Romania. South African bonds offer the most attractive real returns among CEEMEA bonds.

The January 2022 edition of the Global Regulatory Update provides targeted updates on current workstreams and events.

The US has made a remarkable recovery from COVID, … which is mainly a reflection of very aggressive fiscal stimulus.  We survey the CO...

Russia has continued to diversify away from U.S. assets due to sanctions. Most evident is the shift in the currency composition of official reserves. The U.S. Dollar now accounts for 16% of reserves, down from 40% in 2014. Reserves have also been moved away from the United States and Europe. External trade settlements in U.S. Dollar are declining, albeit more slowly. Inflation targeting and credible monetary policy led to lower dollarization.

China’s latest census revealed an alarming deceleration in population growth. The birth rate in 2021 fell to a 72-year record low. The rapidly aging population is having a profound impact on savings, investment, and economic growth. This note looks into China's demographic challenge.

Debt investors seek more ESG issuance from emerging markets as the financial materiality of ESG becomes increasingly clear; Sovereign ESG scoring is no easy task—dozens of indicators and differing approaches across providers cloud the picture; Ingrained income bias: sovereign ESG scores are highly correlated with income per capita, which could deter flows to EMDEs; Solutions to income bias include “inclusive wealth accounting" and adjusting ESG scores for a country’s level of development.

With environmental, social and governance issues dominating the international policy agenda–and as investor demand for new ESG financial products and services continues to grow–global debt markets, and by extension fixed income portfolios, are about to undergo a radical transformation.