Brazil and Turkey, According to IMF, Suffer from rising Interest Rates in the US. Emerging economies such as Brazil and Turkey are affected by the rising interest rates in the United States.
Prime Minister Christine Lagarde of the International Monetary Fund (IMF) insists that this topic is discussed this weekend at the G20 meeting in Buenos Aires.
On Saturday and Sunday, finance ministers and central bankers from the group of critical industrial countries meet in the capital of Argentina.
Their agenda is full, but Lagarde thinks that they should at least have some issues.
The IMF boss points out that investors have already withdrawn some $ 14 billion in investments from emerging economies in May and June.
Central banks in many of those countries have now started to raise their interest, following the American Federal Reserve.
There has also been some direct action to help the value of a national currency.
According to Lagarde, the situation is not as shocking as in 2013, while the Federal Reserve was also in the method of phasing out support policy.
However, the IMF minister advises emerging countries to keep exchange rates flexible and to serve as shock absorbers.
Excessive credit growth
Supervisors must also keep in mind that excessive credit growth does not take place to offset the loss of investments, according to Lagarde.
Then, after all, a new crisis could occur. It is also important that countries with high debts continue to sustain buffers and, where possible, strengthen their barriers.
Other matters that need to be discussed in Argentina, according to the head of the IMF, are the global trade and the impact of technology on the labour market.