The Short-term Liquidity Line: A New IMF Tool to Help in the Crisis

By Geoffrey Okamoto عربي,  中文, Español, Français, 日本語, Português, Русский Challenging times for emerging markets The COVID-19 pandemic has severely disrupted the global economy at every level. Across the world, financial conditions have tightened dramatically, with unprecedented portfolio outflows from emerging markets in terms of both size (a record of about $100 billion) and speed, and markets effectively frozen in some cases. This has created sizable demand for U.S. dollar liquidity, with emerging markets facing sharp liquidity shortages. A short-term liquidity problem can quickly become a deeper and longer-lasting solvency problem. Several institutions have responded to this challenge: major central … Continue reading The Short-term Liquidity Line: A New IMF Tool to Help in the Crisis