Former Prime Minister of Pakistan Calls for Backstop Funding and Coordinated Global Response to Ease Impact of QE Tapering on Emerging Economies
FRANKFURT, Germany, August 29, 2013 /PRNewswire/ --
Mr Shaukat Aziz Addresses Senior Bankers at Frankfurt Event
Addressing a cross-section of senior bankers at a private industry gathering in Frankfurt last night, former Prime Minister of Pakistan, Shaukat Aziz, said that structural reforms, backstop funding and strong leadership are required to meet the current challenges being faced by emerging market economies.
Mr Aziz believes that the International Monetary Fund (IMF) and international capital markets should help bolster reserves for countries facing increasing current account deficits, depleting reserves and exchange rate depreciation.
Furthermore, Mr Aziz stressed that global coordination is needed to soften the impact of tapering of quantitative easing (QE) policies and that the IMF can play a constructive role in this regard. He said: "Talk of cuts to quantitative easing by the US Federal Reserve in particular has impacted investor confidence and needs to be met by credible backstop liquidity arrangements as well as greater clarity around the timetable for a QE exit to facilitate a reduction in volatility and uncertainty."
Mr Aziz emphasised the need for urgent coordinated action by all stakeholders. Failure to do this would mean the contagion effect of the rapid reduction of QE could create disruption in global markets with a more pronounced impact on emerging markets, as has been seen this week.
SOURCE Office of Shaukat Aziz
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