
Perception of EM risk reduced by central bank safety net - investors

The large foreign exchange reserves built up by central banks in emerging markets (EM), and the rise of sovereign wealth funds, should reduce the risk of investing in such markets – and the returns can be enticing, according to panellists at the FX Invest Europe conference in Zurich today.
The perception that EM central banks and sovereign wealth funds would intervene in times of stress has provided comfort to investors, who increasingly perceive these markets to pose less risk than they might
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