In emerging market economies (EMEs), the Covid-19 pandemic increased governments' funding needs at the very moment that investor appetite waned. In March, local currency bond yields rose rapidly and international investors withdrew on a massive scale. While government debt markets have since started to stabilise, the economic crisis triggered by the pandemic has brought into sharp focus two international dimensions of EME governments' funding risk: their vulnerability to currency depreciations and their dependence on non-resident portfolio investors.[…]