WASHINGTON—The International Monetary Fund said Tuesday that there was no panic in emerging markets even as countries like India, Turkey and Argentina were facing sharp capital outflows and currency pressures.
“This is not like May, this is not a panic situation,” said Jose Vinals, director of the IMF’s Monetary and Capital Markets Department.
He called the turbulence in emerging economies “a combination of idiosyncratic factors” across the countries affected, unlike the broad-based capital outflows earlier this year that was sparked by the expected tightening of US monetary policy by the Federal Reserve.
“We don’t see the commonality that existed in May, which was the US tapering. This (the recent turbulence) is something where the US monetary policy tapering expectations have so far not played an important role,” he said.
The Fed finally began to cut back its massive stimulus program this month, long after US interest rates had risen in anticipation, and Vinals dismissed that as the spark for the newest challenges hitting those countries.
Instead, the jitters are signs that the emerging economies “have yet to complete their adjustment to more volatile external conditions and higher risk premiums,” he said separately in a report on recent market developments.
“Some of these headwinds may be homemade, and some others could come from abroad,” he told journalists.
“But one of these fundamentals has to do with keeping inflation under control, and central banks in emerging markets must have a sufficient degree of independence so as to act” in a timely manner to keep a steady hand on inflation.
“It’s very important to transmit confidence to international investors,” he said.
After the Turkish lira sank more than 30 percent against the dollar since mid-2013, Turkey’s central bank late Tuesday jacked up interest rates sharply to defend the currency, despite opposition from Prime Minister Recep Tayyip Erdogan. –Agence France-Presse
Read more: http://business.inquirer.net/162119/imf-no-panic-situation-in-emerging-markets#ixzz2rkKrplor
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook
Nov 16 – International Day for Tolerance
“No more toleration of corruption!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of
Forced Labour and Freedom of Association protocols.
Accept National Unity Government (NUG)
of Myanmar. Reject Military!
#WearMask #WashHands
#Report Corruption #SearchPosts #TakePicturesVideos
November
Nov 2 – Intl Day to End Impunity for
Crimes Against Journalists
Nov 9 – World Science Day for Peace
and Development
Nov 16 – International Day for Tolerance
Nov 19 – World Toilet Day
Nov 20 – World Children’s Day
Nov 25 – Intl Day for the Elimination of
Violence Against Women
Monthly Observances:
Homes Safety Month
Filipino Values Month
National Rice Awareness Month
National Consciousness Month
for Punctuality and Civility
Environmental Awareness Month
National Children’s Month
Organic Agriculture Month
Weekly Observances:
Nov 19-25: Global Warming and
Climate Change Consciousness Week
Nov 23-29: National Girls’ Week
Population and Development Week
Nov 25 – Dec 12: Social Welfare Week
18-Day Campaign to End
Violence against Women
Week 2: Week 3: Drug Abuse Prevention
and Control Week
Last Week: Safety and Accident
Prevention Week
Daily Observances:
Last Saturday: Career Executive Service
Day
Nov 19: National Child Health Day
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
