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Datawatch

Coronavirus triggers dollar drain in big emerging markets

Plunging foreign reserves in Turkey, Indonesia threaten global crisis

The Turkish lira lost around 10% of its value against the dollar since January. (Nikkei montage/Reuters)

TOKYO -- The global coronavirus pandemic threatens to send capital fleeing from emerging economies, as falling exports and a dearth of tourists cause foreign reserves to dry up. Meanwhile, weaker local currencies make servicing external debts harder.

This confluence of negative factors has financial markets watching closely to see if once fast-growing economies can weather a prolonged downturn.

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