[size=45]The International Monetary Fund sends a warning message to countries whose debts are in dollars33 minutes ago
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International Monetary Fund Managing Director Kristalina Georgieva said an increase in US interest rates could have significant effects on countries with high levels of debt dominated by the dollar.
Therefore, it is "extremely important" that the US Federal Reserve (the central bank) clearly communicates its policy plans to prevent surprises, according to the official.
Georgieva warned of the repercussions of raising interest rates in the United States on the weak economic recovery in some countries, and said that the Fed's rate hike could "throw cold water" on the weak economic recovery in some countries.
This indicates the need for the US Federal Reserve to clearly communicate its policy plans. The official called on countries with a high level of dollar debt to take action.
Georgieva said the IMF's message to countries with high levels of dollar debt: “Act now. If you can extend the maturity, please do so.”
The warnings of the Director of the International Monetary Fund came during her participation in the “Davos” economic forum, held online due to the Corona pandemic, and indicated, during her discussion of the selections for the year 2022, that the International Monetary Fund expects the continuation of global economic recovery, but she stressed that it is “losing some momentum.” Due to the re-spread of the infection, the increase in inflation and the high level of debt.