Poor countries feel the sting of local-currency debt

 

Chelsea Dulane, The Wall Street Journal
A Sri Lankan fisherman lines up his fishing boat in Colombo, Sri Lanka
A Sri Lankan fisherman lines up his boat to catch fish in Colombo, Sri Lanka

Some economies were unprepared when foreign investors flocking to their local-currency markets suddenly wanted out

Some of the world's poorest economies borrowed in their own currencies as a shield from painful fluctuations in the US dollar. Now that strategy may be back to bite.