Emerging Market Liquidity (EM GLI) June 2014 Update

by Michael J. Howell13. June 2014 16:44
There are finally signs that Emerging Market liquidity is bottoming out. According to our latest GLI data, end-May 2014 saw a rise in the EM liquidity aggregate to 22.7 (‘normal’ range 0-100) from 18.5. EM liquidity is still well-below its trend, but at least it is not deteriorating as rapidly. End-May data show a strong rise in Central Bank liquidity to an index 46.5 from 39.6, helped by recent currency strength which has given policy-makers more scope to monetize inflows. Admittedly, EM private sector liquidity at 17.9 continues to look weak.


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