In some countries, capital inflows have exceeded financing needs, and are either being recycled into excessive domestic credit growth or forcing authorities to accumulate sizeable and costly foreign exchange reserves. In other countries, large deficits fuelled strong increases in external liabilities, endangering macroeconomic stability and putting sovereign ratings at risk. 5.
Role of international organisations and regional financial cooperation  It is important, however, to recognise that the optimal economic development of emerging countries is still likely to require access to international financial markets. However, these countries may increasingly have to seek such opportunities within the emerging region itself.