In contrast, netFDI might finance less than one-third of India's deficit and only one-sixth of South Africa's, implying that their currencies are more at risk.
If we assume that netFDI continues at last year's pace, then it would more than finance the expected current-account deficits in Brazil and Mexico this year.
Foreign firms are bringing in more capital than they need for investment: the net inflow of FDI is 60% higher than a year ago, yet the actual use of this money for fixed investment has fallen by 6%.