Emerging markets, including Egypt, need continue easing monetary policy to recover: IMF

  • Date: 27-Jan-2021
  • Source: Ahram
  • Sector:Economy
  • Country:Egypt
  • Who else needs to know?

Emerging markets, including Egypt, need continue easing monetary policy to recover: IMF

Easing monetary policy has benefitted emerging markets, including Egypt, since the onset of the COVID-19 pandemic, and helped in the rebound that these markets witnessed in capital inflows and foreign exchange flows, said Fabio Natalucci, deputy director of the monetary and capital markets department of the International Monetary Fund (IMF).

Natalucci's comments were in response to a question by Ahram Online about hot money inflows to emerging markets amid the pandemic and how these markets, including Egypt, can be affected if advanced economies tighten their financial condition amid the pandemic.

The IMF held the press conference on Wednesday to release the Global Financial Stability Update Report.

Tobias Adrian, the IMF's financial counsellor and director of the monetary and capital markets department, said that emerging markets, including Egypt, need to be prepared for any likely volatility in capital inflows (hot money) that can take place at some point amid the pandemic and its associated uncertainty.

Accordingly, Adrian urged policymakers in emerging markets to continue their easing of monetary policy and financial conditions in order to bridge the social and economic gaps caused by the pandemic.

He added that the surge of COVID-19 infections and the associated public health restrictions imposed