According to a spokesperson of the organization, the IMF cannot identify a single trigger that is responsible for the crisis, but it can alert central banks to be cautious in tightening monetary conditions, reports France Press.
“Many emerging countries in recent days have been under new market pressure. Although it is still difficult to say what is trigger that has caused extensive sale of shares, a challenging situation that many countries face is the result of the tightening of external financing conditions, slower economic growth and raw material falling prices", it is said in a statement of the IMF.
As further is added, the latest upheavals point to the need for coordinated macroeconomic and financial measures, but also for good communication. “The turbulence also points up the need for wakefulness among central banks over liquidity conditions in international capital markets” said the IMF.
In the last few days as the main reason for the outflow of capital from emerging countries and for fall in the value of national currencies is being mentioned the new reduction of monetary stimulus of the U.S. Federal Reserve Board (Fed).
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