The UK’s vote to quit the EU is a big a deal for emerging markets. While the direct impact on developing economies — via trade and direct investment — is likely to be limited, the damage to market sentiment is another matter entirely.

Yes, financial markets have traded rationally so far; Friday’s action suggests that we are not going to experience an indiscriminate sell-off or a re-run of the 2008 financial crisis. But the one-off downward adjustment in asset prices that has already taken place will now be followed by a protracted period of uncertainty as Britain and the EU negotiate their separation.

This very likely means prolonged risk-off sentiment and a continued bid for the dollar and other safe assets such as the yen and US, Japanese and Swiss government bonds. In those circumstances, EM assets, particularly liquid ones such as the Mexican peso, will remain under pressure. It is worth remembering that global debt is three times as large as annual global gross domestic product — so in many ways, the “financial economy” matters more than the real one.