IMF warns of the risk of the spread of the recent volatility in the markets

The IMF said that the recent volatility in global financial markets shows how the risks can quickly spread from one economy to another. The Executive Director informed the International Monetary Fund Christine Lagarde conference in the Indonesian capital: "What was evident in the last few weeks is how Asia is in the heart of the global economy and how the imbalances in the market to Asia could spread in fact to the rest of the world." Lagarde said that the global economy faces the negative effects resulting from the rebalancing in China and slow growth in Japan and falling commodities and uncertainty surrounding the lifting of US interest rates rates.

Lagarde said that it must pursue policies that are appropriate to the needs of individual countries but will include mostly strengthen the defenses of a prudent fiscal policy and curb the excessive growth of credit and the unification of exchange rates to operate as tools absorb shocks and Hafiz on the occasion of foreign exchange reserves. The Chinese shares have fallen about 8%, after a week of volatility of trading which triggered panic in global markets, where the Chinese economy dropped the second largest economy in the world and greatly affected the markets, the fact that China's largest consumer of commodities.