The warning is the result of the analysis of eight indicators, including the coverage of imports with foreign exchange reserves, annualized short-term real rates and fiscal measures and measures taken here. These quantities are part of Nomura’s so-called Damocles index, which assesses the vulnerability of 32 emerging markets to currency crises.
Initially, it caused a stir among the public, or even they stopped considering it a country on the same level as Egypt, Sri Lanka, Turkey or Pakistan, i.e. countries that have recently experienced a currency crisis. We experienced our last monetary crisis in 1997 and the memories of it are not very pleasant. How long can we fight?