BAKU: IMF provides granular advice to Caucasus and Central Asian countries to navigate financial challenges, Tobias Adrian, Financial Counselor and Director, Monetary and Capital Markets Department, IMF said answering Trend’s question during a briefing on the Global Financial Stability Report held as part of the IMF Spring Meetings in Washington, Trend reports.
‘The first main avenue here is about financial sector policies. We are regularly doing financial sector assessments in countries, including in the region where we really look at the financial stability in the country, the strength of financial sector oversight, as well as the kind of emergency measures that the countries could deploy if adverse shocks went ahead. So this is deposit insurance, emergency lending and resolution powers,’ he said.
Adrian noted that IMF provides very detailed assessments of
the strength of financial sector policies.
‘We have a number of recommendations and following those recommendations, that’s really our number one pri
ority for country authorities. So that is on the financial sector side. Secondly, in terms of monetary policy and macroeconomic frameworks, of course, some countries in that region have a more fixed exchange rates, others inflation target,’ he added.
Adrian noted that the approach varies depending on the exchange rate regime in place.
‘Some nations opt for fixed exchange rates, while others implement inflation targeting or currency pegs. For those practicing inflation targeting or similar frameworks, utilizing the exchange rate as a buffer to absorb sudden shocks becomes crucial. Additionally, we are providing detailed and granular advice to authorities in these societies to navigate these challenges effectively,’ he added.
The Spring Meetings of the International Monetary Fund and the World Bank Group kicked off on April 15.
The main ministerial meetings and events will take place April 17-19 with other events and activities taking place during the week, April 15-20.
At the heart of the gathering are me
etings of the joint Development Committee and the IMF’s International Monetary and Financial Committee, which discuss progress on the work of the World Bank Group and the IMF.
The Spring Meetings bring together central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organizations and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.
Source: Trend News Agency