September 28, 2018

As the US Federal Reserve raises rates, there are growing concerns over capital flight and financial system meltdowns in emerging markets – and China, in the middle of an escalating trade war with the United States, is no exception.

This week the Fed raised interest rates for a third time this year, reaffirming its outlook for further gradual rises well into next year.

Countries from Argentina to Turkey have already been battered by higher interest rates in the US as US dollar-denominated assets became more attractive, triggering capital flight from those countries that have seen their currencies weaken against the greenback.

Read more:

https://www.scmp.com/news/china/article/2166072/fed-rate-rises-trade-war-and-us-dollar-dominance-add-big-headache-beijing