IIF says foreigners plowed USD 99bln into emerging market portfolios in January, setting record inflow

• At USD 98.9bln net inflows, largest January haul on record and biggest overall since 2020
• EM debt pulls USD 71.4bln in January, largest net monthly inflow on IIF data records
• Equities attract USD 27.4bln in January, fifth-largest inflow since 2005
• China sees USD 10.4bln debt inflow in January, equities draw USD 19.7bln
• EM ex-China debt pulls in USD 61bln net in January

The record inflow of USD 99 billion into emerging market portfolios indicates strong foreign interest, particularly in the face of evolving global economic conditions. This trend, particularly the significant inflows into EM debt and equities, may suggest a shift in risk appetite and could influence currency dynamics and asset allocations across both emerging and developed markets, notably impacting the USD and interest rates as investors seek growth opportunities.