30/01/2014
Denied affected by "the Fed" decision to cut stimulus
«IMF»: There is no panic about the decline of emerging market currencies
The IMF denied the presence of panic associated with emerging the growing States, such as Argentina and Turkey and India reduced their prices raising fears of investors. The Director of market management and capital financial fund Jose vinalz ' movement of panic in the markets, that combination of factors particular to each country. Official said that the recent tension in emerging economies have a common interpretation, unlike those in spring 2013. Investors were retained then tightening of US monetary policy and money suddenly to the United States, leading to declining public and private funding in some countries including Turkey and Brazil. The US Federal Reserve began reducing the liquidity pump into in January, but vinalz said that this step did not play an important role in the tense financial conditions.
In a statement prepared and distributed to journalists ' markets not affected much by the Fed's decision. He said the strained financial conditions due to weakness in emerging countries, come to remember the need to continue working to adapt ' with the most volatile external financing requirements and higher risk compensation required by the market. Since the mid-2013, the Turkish Lira has fallen by over 30 per cent against the dollar, while the Argentine peso lost more than 20 percent against the US currency since the beginning of January. The Fund said that central banks in emerging countries is to make greater efforts to combat inflation, which raises the reluctance of investors through times the value of their assets, and they therefore enjoy the ' necessary independence. Vinalz said that central banks in emerging countries must enjoy sufficient independence to act quickly to control inflation and raise the confidence of international investors.
The Central Bank announced Wednesday a significant increase in interest rates despite the opposition of Prime Minister Recep Tayyip Erdogan, that cause large amounts of money out of developing markets in the past few days on worries pushed the currency in Turkey, Argentina and Russia recorded low levels, many investors attributed to reduction of stimulus cash. And Jose vinalz, Director of the monetary and financial markets IMF ' believe that the events of the past few days due to the major component are linked to problems in emerging markets. This is not the Outlook for reducing the US stimulus role until now. The Managing Director of the monetary and financial markets at the International Monetary Fund that Central American plays wisely reduced its monthly bond purchases consistent with improved US economic data.
