IMF’s Georgieva: Second major coronavirus wave could cause further disruptions
In a blog posting ahead of Saturday's virtual meeting of finance ministers and central bank governors from the Group of 20 major economies, the International Monetary Fund’s (IMF) Managing Director (MD) Kristalina Georgieva said that the global economy is not out the woods yet, warning that the second major coronavirus wave could cause further disruptions.
Additional comments
“Job losses, bankruptcies, industry restructuring could pose significant challenges to the financial sector.”
“Rising global debt levels are a serious concern, but warns against premature withdrawal of fiscal support.”
“Monetary policy should remain accommodative where output gaps are significant and inflation is below target.”
“Continued coordination across central banks essential to ensure effective functioning of money, forex and securities markets.”
“Rising protectionism, retreat from multilateralism endanger the global recovery.”
Market reaction
The warnings from IMF’s Chief add to the risk-off market mood, which undermines the risk assets such as the Asian equities, Antipodeans.
Meanwhile, USD/JPY trades flat at 106.95, unable to cheer the broad dollar rebound.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
