The cross-border eects of a shift in the monetary policy stance in the United Stateshave always been a focus of policymakers and academics. An empirical literature is rapidlydeveloping that aims to quantify these cross-border monetary spillovers, with the commonnding that changes in the stance of U.S. policy have sizable eects on economic activityin emerging economies (EMEs).1 One prominent theme within this literature is an emphasison the nancial channel of spillovers, whereby a rise in U.S. rates transmits to foreigneconomies via tighter credit market conditions abroad as well as via substantial deviationsfrom uncovered interest parity (UIP) (see Giovanni, Kalemli-Ozcan, Ulu and Baskaya (2017)and Degasperi, Hong and Ricco (2020)).