Maldives remains at high risk of debt distress, warns IMF
The Maldives is highly vulnerable to climate change risks, with potentially severe economic costs due to floods and rising sea level, the IMF said.
The Maldives is highly vulnerable to climate change risks, with potentially severe economic costs due to floods and rising sea level, the IMF said.
It also upgraded the growth forecast for the India economy by 0.2 percentage points to 6.5 percent for both 2024 and 2025, citing resilient domestic demand.
The data cited the buoyant domestic spending and improved global growth prospects.
In the complex world of international finance, the recent reclassification of India’s exchange rate regime by the International Monetary Fund (IMF) from “floating” to “stabilised arrangement” has sparked a spirited disagreement between it and the Reserve Bank of India (RBI).
The IMF reclassified India’s foreign-exchange regime to a stabilised arrangement from a floating system, it said in its annual Article IV country report.
The country's social stability started deteriorating since the October 2019 uprising, adding to it is the economic impact of Covid-19 and the deadly Port of Beirut explosions in August 2020.
According to the new Prime Minister Najib Mikati, his cabinet is formed of specialists who are keen to stop the country's current collapse by dealing with urgent issues, including the negative repercussions of lifting subsidies.
Final approval of the SDR allocation by the Board of Governors requires an 85 percent majority of the total voting power of all IMF members.
The SDR allocation will boost the liquidity and reserves of all our member countries, build confidence, and foster the resilience and stability, according to IMF MD Kristalina Georgieva
Surging reserves can be a double-edged sword as there is a cost to holding them. High reserves will obviously lead to appreciation of the currency and rise in inflation, because capital inflows that result in high reserves are used to buy domestic currency, thereby expanding the domestic monetary base without a corresponding increase in production, and this causes a rise in inflation.
