Should-Read: Hyun Song Shin: Accounting for global liquidity: reloading the matrix: “In emerging market economies especially, a weakening of the domestic currency against the dollar saps both cross-border bank lending and investment… http://www.bis.org/speeches/sp170419.htm

..Such effects flow through the dense interconnections of dollar lending in the global financial system. In devising policy for financial stability, a tight focus on underlying causes (excess leverage and funding risk) rather than on the symptoms (capital flows) stands a better chance of being more effective in addressing the vulnerabilities as they emerge…