India disagrees to IMF liquidity boost as it may affect financial stability

17.04.2020 - Davydova Maria
India disagrees to IMF liquidity boost as it may affect financial stability

India extends its disapproval for the International Monetary Fund’s allocation of the new Special Drawing Rights as it may possibly be incapable of driving out its country under economic pressure amid the virus outbreak on Thursday.

According to India’s Minister of Finance Nirmala Sithraman, IMF’s SDRs could cause a huge impact if the budget will be used by other countries for unnecessary actions. The finance minister was also involved in the resistance to the allocation of the new SDRs along with the U.S. Secretary of Treasury Steven Mnuchin.

The IMF’s plan to release new cash reserves could provide flexibility to its 189 members.

“In the current context of illiquidity and flights to cash, the efficacy of an SDR allocation is not certain. Consequently, extraneous demands for these reserves, not related to domestic monetary and financial stability, would be costly, and hence cannot be supported,” Sithraman said in a statement.

The finance minister also stated that a lot of countries depend on reserve funds as a principal solution to its problems.

 

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?