World Bank’s Malpass: Coronavirus pandemic and economic fallout have caused 'very serious, long-lasting setback'

The World Bank President David R. Malpass recently crossed wires, via Reuters, while appearing for an interview. The global lender’s head cited fears of the coronavirus (COVID-19) during the latest speak.

Key quotes

Coronavirus pandemic and economic fallout have caused 'very serious, long-lasting setback' to the global economy.

Multilateral development banks have made convincing arguments against calls for them to freeze service payments by poorest countries.

Increased transparency about debt by countries aided by g20 debt relief will help promote investment for future growth.

Private creditors were expected to provide comparable treatment for poorest countries; would like to see increased participation.

35 of 73 eligible poorest countries participating in G20 Debt Service Suspension Initiative (DSSI), more have expressed interest.

FX implications

Considering the grim outlook suggested by the key personality, the market’s latest risk-on sentiment should recede on the news. However, being the early Asian morning on Tuesday, the traders are yet to respond to the news. Against this backdrop, the AUD/USD pair remains mostly unchanged around 0.6900 after the release.