This month China freed interest rates on large foreign-currency loans, and the government recently announced that it would liberalise local-currency credit within three years.

ECONOMIST: The longer march

Earlier this month, Fitch Ratings lowered its rating on China's local-currency government debt, warning of a credit buildup.

WSJ: IMF's Asia Chief Anoop Singh Says China Slowdown Fears Overblown

As expected, Brazil imposed a 6% financial transactions (IOF) tax on offshore loans as part of a series of planned measure to curb inflation by limiting credit, and keep the local currency in check.

FORBES: Brazil Companies Overdosing on Dollar Debt; Govt Puts the Breaks On

But for emerging markets, such flows have traditionally been a mixed blessing, exacerbating local credit booms, and pushing up the value of their currency.

BBC: IMF follows the money in Brazil