Citi Private Bank

Browser Requirement

To best view Citi Private Bank's site and for a better overall experience, please update your browser to a newer version using the links below.

System Outage
Citi Private Bank logo

Language Notification

Please be advised that future verbal and written communications from the bank may be in English only. These communications may include, but are not limited to, account agreements, statements and disclosures, changes in terms or fees; or any servicing of your account.

Por favor, tenga en cuenta que es posible que las comunicaciones futuras del banco, ya sean verbales o escritas, sean únicamente en inglés. Estas comunicaciones podrían incluir, entre otras, contratos de cuentas, estados de cuenta y divulgaciones, así como cambios en términos o cargos o cualquier tipo de servicio para su cuenta.

Informamos que as futuras comunicações do banco, verbais e escritas, podem estar disponíveis apenas em inglês. Essas comunicações podem incluir, entre outras, acordos de conta, extratos de conta e divulgações, alterações aos termos ou tarifas, ou qualquer tipo de serviço pertinente à sua conta.

仅此通知,本行即日起发出的口头及书面通信可能将只提供英文版本。这些通信可能包括但不限于账户协议,账单和通知,条款或费用变更;或任何为您账户提供的服务。

Please be advised that future verbal and written communications from the bank may be in English only. These communications may include, but are not limited to, account agreements, statements and disclosures, changes in terms or fees; or any servicing of your account.

Por favor, tenga en cuenta que es posible que las comunicaciones futuras del banco, ya sean verbales o escritas, sean únicamente en inglés. Estas comunicaciones podrían incluir, entre otras, contratos de cuentas, estados de cuenta y divulgaciones, así como cambios en términos o cargos o cualquier tipo de servicio para su cuenta.

Informamos que as futuras comunicações do banco, verbais e escritas, podem estar disponíveis apenas em inglês. Essas comunicações podem incluir, entre outras, acordos de conta, extratos de conta e divulgações, alterações aos termos ou tarifas, ou qualquer tipo de serviço pertinente à sua conta.

仅此通知,本行即日起发出的口头及书面通信可能将只提供英文版本。这些通信可能包括但不限于账户协议,账单和通知,条款或费用变更;或任何为您账户提供的服务。

CEEMEA-facing-acute-economic-pressure

Perspectives

CEEMEA facing acute economic pressure

Jeffrey Sacks

By Jeffrey Sacks

Head - EMEA Investment Strategy

April 21, 2020Posted InEquities, Fixed Income and Investment Strategy

The largest Central & Eastern Europe, Middle East, and Africa (CEEMEA) economies of Russia, Turkey and South Africa are facing major economic challenges over the coming months. This makes us cautious about these nations’ investment prospects even after the recent weakness. The Middle East also faces strain from the collapse in oil prices and pressures on regional currency pegs.

 

Admittedly, the outlook had somewhat improved in 2019. However, unorthodox policymaking for several years prior to the COVID-19 crisis – particularly in Turkey and South Africa – has created economic fragility that will be severely tested in the months ahead.

 

The region is characterised by a dangerous mix of vulnerabilities. Its current account deficits may worsen as exports weaken sharply. Its budget deficits may deteriorate as tax revenues decline. Its US dollar denominated debt may be difficult to service as the dollar stays firm. It is has commodity export exposure at a time when demand weakness is expected to keep prices under pressure. In addition, for Russia, Turkey, and South Africa, the medical challenge of COVID-19 is mounting and their healthcare systems face pressure.

 

In emerging markets, it is often the currencies that first reflect the outlook. It is therefore unsurprising that the YTD performances of the South African rand, Russian ruble, and Turkish lira are amongst the worst in the emerging market universe. This is not indicating an oversold entry level for these currencies, nor for these countries’ equities and bonds, as a tough period lies ahead.

 

Read European Strategy.