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Abstract

<jats:p>The global financial system is confronting the ongoing war in the Middle East, potential inflationary pressures, rising risks of further tightening in financial conditions, and several amplification channels that could lead from market turmoil to financial instability. Cross-border portfolio flows to emerging markets, largely intermediated by non-bank financial institutions, offer important opportunities but also carry risks, including heightened sensitivity to shifts in global risk sentiment.</jats:p>

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Keywords

financial global risks system confronting

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