The biggest brokerage and investment bank in Japan, Nomura Holdings, has issued a warning.
Seven nations, including Egypt, Romania, Sri Lanka, Turkey, the Czech Republic, Pakistan, and Hungary, are now at high risk of a currency crisis.
“This is the highest total score since July 1999 and not too far from the peak of 2,692 during the height of the Asian crisis,” Nomura economists said.
Nomura calculates that a score above 100 implies a 64 percent likelihood of a currency crisis in the next 12 months based on data.
Egypt currently has the lowest score at 165 after devaluing its currency significantly twice already this year and applying for an IMF program.