Rates at the I&E window also appreciated from nearly $ in May 2017 to just over $  NGN – USD Convergence Across the Various Markets 400. 375. 350. 325. 300. 27/11/20  07/03/21  15/06/21  23/09/21  NGN Spot NIFX Index  01/01/22  11/04/22  20/07/22  28/10/22  NAFX Index 6m NDF  17.
Prior to the current crisis, several economies such as Hungary, Estonia, Latvia, and Lithuania experienced un-sustainable private credit booms, usually fueled by un-hedged external financing. These credit booms led to huge debt overhangs and foreign currency exposures on their domestic balance sheets, making them highly vulnerable to capital outflows.