The answer is yes, and it is often best if the assistance comes not from within the country, but from without. Liquidity provided by foreign sources can help emerging-market countries cope with financial crises without many of the undesirable consequences that can result from the provision of domestic-currency liquidity by the domestic central bank.
roperly managed, and in conjunction with steps to address the sources of the crisis, foreign liquidity assistance does not lead to increased inflation, higher interest rates, and an excessive depreciation of the domestic currency. Instead, it gives the government international reserves which can then be used to stabilize the value of the domestic currency and support domestic financial markets and institutions.