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For the last decade or so, emerging market governments and corporations have taken advantage of lower interest rates in the developed world and borrowed money

For the last decade or so, emerging market governments and corporations have taken advantage of lower interest rates in the developed world and borrowed money in a hard currency, especially in US dollars or Euros. Under what circumstances could foreign currency denominated debt (even with a low interest rate) backfire?

Based on your readings provide an example of a multinational corporation or government that had borrowed money in a foreign currency and had difficulties in paying it back.

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