Emerging markets are using all their weapons to cope with market volatility


The central banks have been moving in emerging markets since the beginning of this year, and monetary policy makers are all the tools available to calm the markets as a result of tightening monetary policy in a number of advanced economies .
These actions are unusual in emerging markets that have been relatively calm in recent years, but the change in the global financial policy map, especially in major economies, coupled with violent market turbulence has triggered such action .
Since the end of last year, the Bank of England has begun its first monetary tightening and interest rate hike and made a similar decision last month, along with monetary tightening initiated by the Fed since the end of 2016 and its ongoing implementation so far .
The European Central Bank is on the verge of completing the bond purchase, which is due to end by the end of this year .
At the level of the emerging markets themselves, the economic conditions there have been a major factor in the move of central banks in line with the state of the economy within each country .
A number of emerging economies are suffering from a sharp acceleration in inflation, a sharp depreciation of the currency, a rapid increase in bond yields, capital flight and a decline in the outlook for the economy .
All this was an essential mixture that pushed central banks in these markets to be the focus of economic events this year .
Of the 25 countries in the MSCI Emerging Markets Index, including Brazil, Mexico, Russia, Egypt, Qatar, China, India and Pakistan, it is enough to refer to simple models that illustrate the state of mobility that dominates central banks .
India seeks to stop currency bleeding
Although the rate of interest rate increases in India is not large compared to other countries such as Indonesia and Argentina, but this year saw the first increase since 2014 .
India's interest rate now stands at 6.50 percent after the last increase in August, which was preceded by another increase in June .
India is suffering from several problems, notably the sharp decline in the value of the domestic currency, which has the lowest level in history, along with the increase in inflation, which reached a high level in 4 years .
India's bond market has also seen a $ 6 billion draw since the beginning of this year, along with the global rise in oil prices .
However, the Indian finance minister said in his latest comments that any intervention by the central bank would do little to stabilize the declining rupee "because its decline is the result of global reasons."
Argentina is looking for economic reform
The reasons for the Indian Central Bank's move to tighten monetary tightening with Argentina, which raised interest rates four times this year to 45 percent, are similar .
Argentina has its own economic problems, most notably the devaluation of the currency to lose about half of its value since the beginning of the year, which eventually required a $ 50 billion IMF loan .
With the peso falling, inflation rising and interest rates rising without a real result, the head of Argentina's central bank resigned in June and a number of senior bank officials stepped down .
The bank also declared itself a problem-solving agency, not a consultant, as well as a 5% increase in reserve requirements at banks. Argentinian banks are now required to keep 20% of their deposits in reserves .
Indonesia raises interest 4 times
In just three months the central bank in Indonesia made three decisions to increase interest until the basic interest rate of 7-day repo reached 5.5 %.
Indonesia faces a crisis in the local currency bond market, where demand has fallen and yields have risen sharply and the country's local currency "Rupiah" is falling sharply .
This month, the Indonesian Central Bank also started to implement the overnight rate, in order to enhance the reliability of reference rates .
Turkey is dealing with monetary policy
Despite the Turkish president's opposition to monetary tightening, the repo rate for a week now stands at 17.75%. Turkey is suffering from a sharp currency collapse with losses of more than 40% against the dollar since the beginning of the year .
The central bank is trying to adopt a different approach to the interest rate increase again, allowing some debts related to export services and foreign exchange income to be paid at the fixed pound rate.
This month, the Bank announced the reduction of the maximum limit on foreign exchange facility "Forex" under the reserve options mechanism by 5% to 40 %.
Brazil cuts interest to record low
Unlike other central banks, Brazil has cut interest rates to a record low of 6.5%, the lowest level ever .
Brazil's efforts come with a sharp drop in inflation and a drop in the country's local currency amid efforts to support the country's slowing economic growth .
Brazil's central bank decided on August 1 to set interest rates unchanged at its current low level .
Russia monitors world conditions
Two decisions to reduce the interest rate is what Russia took in this year until the basic interest rate reached 7.2%, after 6 times the reduction in 2017 .
Russia remains skeptical about inflation expectations, the external economic situation and fiscal procedures .
Therefore, at its last meeting last month, the Russian central bank kept the interest rate for the third time in a row.
» Parliamentary Services Determine The Only Solution To End The Housing Crisis In Iraq
» Finance spent 2 trillion dinars for Erbil in the first 3 months of 2022
» Increasing the capital of the central bank enhances its balanced monetary policy
» Parliament intends to legislate a national security law
» The Presidency of the Region denies its request from the UN Security Council to mediate between Erbi
» Baghdad reveals the "restructuring" of oil contracts in Kurdistan and threatens violators with legal
» Parliamentary Al-Fateh: We objected to the Food Security Law in order not to legitimize the current
» The President of the Region: We have reached a ground to solve the political blockage and there are
» Gold prices are rising in the Iraqi markets
» About a billion dollars in bank sales in a week
» Al-Rasheed Bank decides to raise the credit card ceiling to 5 times the salary
» The River Street Stock Exchange in Baghdad records a slight decrease in gold prices
» Decline in Iraq's oil exports to America
» Iyad Allawi sends a message to the political forces
» Parliamentary Energy: Ending the electricity crisis file depends on three factors
» Electricity announces the start of the initial stages of construction of solar power plants
» Ministry of Electricity: We will pay Iranian gas dues at the end of May
» Finance Committee: The Food Security Law will include the addition of 500 billion dinars to serve Ba
» Khazali reveals that al-Sadr accepted deputies from al-Maliki's coalition to form a government and u
» Erbil wants to develop trade relations with Washington: 138 American companies are operating in the
» Al-Muthanna expects a suffocating water crisis and awaits 3 difficult months
» Federalism is not equal between citizens..Kurdish political prisoners threaten to sue the regional g
» The President of the Kurdistan Government leaves for Davos to attend the forum
» Two discussion tables to develop attitudes to legal legislation
» 3 differences between the government project and the parliamentary proposal for a food security law
» More than 320 cases before international courts to recover the looted antiquities of Iraq
» The Ports Company confirms control of the territorial waters and sea crossings
» Breaking consociationalism is more important than the prime minister’s position at Al-Sadr and antic
» Planning: food security will be a priority in the poverty strategy
» Al-Rasheed decides to raise the credit card ceiling to five times the salary
» Dollar exchange rates in local markets
» The Triple Alliance recalls its strength and "refutes" allegations of political blockage
» Al-Halbousi: “The ban on normalization” is a true reflection of the people’s will
» The PUK demands Baghdad to protect Iraqi lands, including Kurdistan
» Nechirvan Barzani meets with Bafel Talabani in Sulaymaniyah
» Iyad Allawi invites political forces
» Barzani clarifies the possibility of "resolving" differences between Kurdish forces
» Representative of the State of Law: The expected scenarios in the next stage herald a solution to th
» A deputy expects the Federal Court to respond in the event of a new challenge to the Food Security L
» Minister of Electricity: Iranian gas dues will be paid at the end of this month
» An Iraqi speech to the Security Council - Hana Adwar
» Federal: The caretaker government is achieving the withdrawal of confidence from the Prime Minister
» Kurdistan Region establishes 3 advanced industrial cities with international assistance
» The President of the Kurdistan Regional Government participates in the Davos World Economic Forum
» I am confident of its success.. The coordination framework: the political blockage will be resolved
» 7 Chaired Parliamentary Committees.. Women's Disputes Obstacles to Choosing the Chairperson of "Wome
» Gold prices are rising in the Iraqi markets
» It was recently inaugurated by the government.. (700) million dinars donated by citizens at the shri
» Next Wednesday .. Who will prevail in the food security law, for the devotees or for those who refus
» Iraq achieves $ 20 billion in surplus oil sales and avoids borrowing
» Parliamentary committee reveals the reason for the deterioration of electric power: Iran is conducti
» Good Deed distributes the food basket in Baghdad to orphans and the needy on the anniversary of the
» Alia Nassif: Parliament can instruct the Ministry of Finance to take alternative mechanisms to the F
» Al-Maliki: The judiciary is the last pillar of the stability of the political process, and its decis
» Close to him: Al-Amri is in good health, and there is no health to take him to the hospital
» His office: Al-Kazemi will participate in receiving the body of the Iraqi poet Muzaffar Al-Nawab
» Al-Halbousi participates in an “extraordinary emergency” conference in Cairo
» In an effort to resolve the crisis, a negotiating team presents the initiative of the independents t
» The Minister of Finance excludes resorting to borrowing and reveals the size of the surplus from sel
» The World Bank announces its readiness to support Iraq by expanding the use of clean energy
» With 967 thousand barrels per day.. Iraq is the third largest oil exporter to China in the month of
» The stability of the dollar exchange rates on the Iraqi local stock exchange
» Parliamentary Energy explains the reasons for the deterioration of the electricity supply to citizen
» Independent representatives form a negotiating team to present their initiative
» Oil prices rise, Brent approaches $113 a barrel
» Dollar exchange rates in local markets
» An upcoming meeting with the Sadrists.. The independents form a committee to present their initiativ
» The political winds in Kurdistan are moving.. Setting a date for the visit of a delegation from the
» A segment of retirees and employees addresses Parliamentary Finance about the predecessor of Al-Rafi
» Service Council Chairman: We are ready to launch any electronic form as soon as job grades are avail
» MilitiaMan " The World is Watching" Thursday Night 5-19-2022
» KTFA Members "News and Views" Thursday Afternoon 5-19-2022
» Documents: The legal cordon "tightens" the Ministry of Oil regarding the region's oil, and the Feder
» Dozens of parliamentarians sign to settle defense mobilization salaries
» The supply of electric power in an Iraqi governorate has fallen to a third
» Reservations and controversy in Parliament’s reading of “Food Security”
» The Prime Minister directs to change {Green} and return its original names
» Iraq asks America to answer 14 files of convicts residing on its soil
» Opening it may topple big heads.. Parliamentary Integrity: “Corruption files” are closed with a “pol
» Washington imposes sanctions on Hezbollah financial companies in Iraq
» Transportation announces the reception of three commercial ships in the northern port of Umm Qasr
» Iraq and Jordan sign a memorandum of understanding on the exploitation of natural resources
» The Central Bank and Kurdistan Integrity sign a cooperation agreement to reduce money laundering
» The Supreme Judicial Council calls on political forces not to include him in their disputes
» Ministry of Commerce: There will be no famine in Iraq
» Dollar exchange rates in local markets
» Alsumaria publishes a picture of the bank account of the Minister of Transport
» State of Law: UNAMI is out of context
» Count him as an escape.. A legal expert comments on the dismissed governor of Salah al-Din sending h
» In the document .. Initiating a criminal case against the Minister of Oil for his failure to impleme
» Irada movement calls for respect for what is issued by the judiciary and directs a request to the po
» Can the proposed food security law be challenged? Legal expert explains
» Political blockage.. Is external mediation the solution?
» Document .. Federal Oil announces that it will "take over" the management of the export of crude fro
» KTFA Members "News and Views" Wednesday PM 5-18-2022
» Noon Agency publishes the text of the proposed food security bill in Parliament
» Al-Maliki..we are surprised by the insistence on legislating the food security law and standing agai
» Ur State Company signs a contract worth more than 13 billion dinars to supply electricity to the cen