According to Gabriel Zucman, 8% of the world’s total household wealth, which is USD 7.6 trillion, was in tax havens in 2016 – according to Zucman’s conservative estimates, 75% of these funds are derived from illegal tax evasion.5 In 2009, the G20 took action and compelled tax havens to sign bilateral treaties providing for the exchange of bank information.
For emerging economies, sizeable currency movements over a short interval may occur through a combination of the greater inherent volatility of emerging economies and the potential sensitivity of the exchange rate to revisions in reserve management strategies.7 As it has turned out, this risk has not been realised in recent years, even if concerns have been elevated at various times (including in early 2016).