Donghyun Park; Arief Ramayandi; Shu Tian2021-10-052021-10-052020-10N/AN/A2313-65372313-6545https://www.adb.org/publications/debt-buildup-currency-vulnerabilityhttps://hdl.handle.net/20.500.14540/5730This paper examines how debt buildup is related to currency depreciation pressure. It highlights the importance of a debt surveillance framework that monitors both public and private debt buildup, especially in emerging markets. The study analyzes a panel dataset of 59 advanced and emerging markets. It finds that both private and public debt exacerbate currency vulnerability, though the evidence of a significant effect on currency depreciation pressure is more robust and consistent for private debt. The authors also find that excessive private debt buildup can be particularly harmful in emerging markets.28EconomicsFinance sector developmentFinancial markets and institutionsGovernance and public sector managementPublic financial management (budget)