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17 Apr 2015
Shifting risks to global financial stability – BNPP
FXStreet (Barcelona) - Yves Nosbusch of BNP Paribas, comments on the new and ‘rotating’ risks to global financial stability, as highlighted in IMF’s Global Financial Stability Report.
Key Quotes
“A day after the publication of the World Economic Outlook on 14 April 2015, the IMF has released the latest version of its Global Financial Stability Report (GFSR). The world economy has been hit by three major shocks over the last few months: the fall in the oil price as well as many other commodity prices, significant exchange rate movements for the main currencies, and the start of Quantitative Easing by the European Central Bank.”
“The fall in commodity prices and the sharp appreciation of the dollar have shifted risks from advanced economies to emerging markets, particularly commodity exporters and those sectors/countries that have accumulated significant levels of dollar-denominated debt.”
“While the World Economic Outlook concluded that these shocks were positive overall for global growth, the GFSR stresses the point that they have also increased risks to global financial stability.”
“More specifically, risks to global financial stability have shifted along three main dimensions: from advanced to emerging economies, from banks to non-banks, and from solvency to liquidity issues.”
Key Quotes
“A day after the publication of the World Economic Outlook on 14 April 2015, the IMF has released the latest version of its Global Financial Stability Report (GFSR). The world economy has been hit by three major shocks over the last few months: the fall in the oil price as well as many other commodity prices, significant exchange rate movements for the main currencies, and the start of Quantitative Easing by the European Central Bank.”
“The fall in commodity prices and the sharp appreciation of the dollar have shifted risks from advanced economies to emerging markets, particularly commodity exporters and those sectors/countries that have accumulated significant levels of dollar-denominated debt.”
“While the World Economic Outlook concluded that these shocks were positive overall for global growth, the GFSR stresses the point that they have also increased risks to global financial stability.”
“More specifically, risks to global financial stability have shifted along three main dimensions: from advanced to emerging economies, from banks to non-banks, and from solvency to liquidity issues.”