IMF Provides Granular Advice To Caucasus And Central Asian Countries To Navigate Financial Challenges

(MENAFN- Trend News Agency) U.S., WASHINGTON, April 16. IMF providesgranular advice to Caucasus and Central Asian countries to navigatefinancial challenges, Tobias Adrian, Financial Counselor andDirector, Monetary and Capital Markets Department, IMF saidanswering Trend's question during a briefing on the GlobalFinancial Stability Report held as part of the IMF Spring Meetingsin Washington, Trend reports.

“The first main avenue here is about financial sector policies are regularly doing financial sector assessments in countries,including in the region where we really look at the financialstability in the country, the strength of financial sectoroversight, as well as the kind of emergency measures that thecountries could deploy if adverse shocks went ahead. So this isdeposit insurance, emergency lending and resolution powers,” hesaid.

Adrian noted that IMF provides very detailed assessments of
the strength of financial sector policies.

“We have a number of recommendations and following thoserecommendations, that's really our number one priority for countryauthorities. So that is on the financial sector side. Secondly, interms 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 exchangerate regime in place.

“Some nations opt for fixed exchange rates, while othersimplement inflation targeting or currency pegs. For thosepracticing inflation targeting or similar frameworks, utilizing theexchange rate as a buffer to absorb sudden shocks becomes crucial, we are providing detailed and granular advice toauthorities in these societies to navigate these challengeseffectively,” he added.

The Spring Meetings of the International Monetary Fund and theWorld Bank Group kicked off on April 15.

The main ministerial meetings and events will take place April17-19 with other events and activities taking place during theweek, April 15-20.

At the heart of the gathering are meetings of the jointDevelopment Committee and the IMF's International Monetary andFinancial Committee, which discuss progress on the work of theWorld Bank Group and the IMF.

The Spring Meetings bring together central bankers, ministers offinance and development, parliamentarians, private sectorexecutives, representatives from civil society organizations andacademics to discuss issues of global concern, including the worldeconomic outlook, poverty eradication, economic development, andaid effectiveness.

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