NEW YORK (Reuters] – According to the Institute of International Finance this quarter saw capital flows not to China to stop. It also caused some EMs to be less prepared for the expected tightening of monetary policies in developed nations.

The high-frequency monitoring shows non-China EM flows coming to a halt. This quarter, economists at IIF said. They also noted that “important emerging market” have been almost acting like closed economies in the recent years.

“Emerging markets have stopped de facto.”

The rise in inflation in advanced economies has been reflected in higher rate hike expectations. This is especially true in the United States. Many emerging markets central banks have had to tighten their monetary policies.

IIF Analysis shows that the three largest EMs were the ones with the lowest inflows in the last three years. This is to protect against the anticipated capital outflows from higher U.S. rate.

According to the IIF, Argentina, Brazil, Turkey and Turkey “are all in quasi-financial autarky” with recent inflows near zero. This is because foreign investors have stayed away from stocks and bonds within these countries.

According to the report, the devaluation of the Turkish lira against the dollar, which is down almost 35% so far in this quarter and 46% since the beginning of the year, “is likely” to make the situation worse going forward.

Argentina’s peso fell 17% in controlled decline, while Brazil’s real dropped 8%.

Friday will see the publication by IIF of its nonresident capital flows reports for November.