Borrowed in dollars

While payrolls will come and go, the big story remains the accelerating rout in Emerging Markets, where a bevy of currencies, including the TRY, ZAR, INR, IDR and especially the Argentina Peso, have gotten crushed prompting questions if another 1997-style EM crisis is on the horizon.

Borrow in dollars then the local currency risk is not observable. When central banker discovers the local currency is collapsing, they suddenly raise interest charges.