GCC NATIONS EXPRESS CONCERN OVER DISRUPTIVE CAPITAL FLOWS
Qatar, together with its 13-member Group countries which includes four GCC nations, has expressed serious concerns at the International Monetary Fund (IMF) meeting over the potential for disruptive capital flows and exchange rate volatility in Emerging Market Economies (EMEs).
They urged the Fund to continue its analysis on the implications of the normalising of monetary policies in the Advanced Economies (AEs). The country and the group members were looking forward to the low-income countries' planned work on financial sectors surveillance, the review of debt limits and their financial deepening efforts. Addressing the 29th meeting of the International Monetary and Financial Committee (IMFC) in Washington on behalf of 13 countries, including Qatar, UAE, Bahrain, Oman and Kuwait, the UAE Minister of State for Financial Affairs, Obaid Humaid Al Tayer, urged the IMF to maintain caution before any premature withdrawal of accommodative monetary policies. “It is encouraging that consolidations in the AEs have helped support long-term growth. But further consolidation efforts in Europe will need to support long-term growth,” he said. He also stressed the need for structural reforms in the labour, product and financial markets.