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☆ IMF's Asia director compares Japan & China's fiscal challenges
▼ + stars: | 2024-10-25 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailIMF's Asia director compares Japan & China's fiscal challengesKrishna Srinivasan, Director of IMF of Asia and Pacific Department, talks to CNBC's Martin Soong about Japan and China's fiscal positions, as the Bank of Japan normalizes its monetary policy and China embarks on measures to prop up the country's economy.

Persons: Krishna Srinivasan, CNBC's Martin Soong Organizations: IMF's, Japan, Pacific Department, Bank of Japan Locations: IMF's Asia, Asia, Japan, China

☆ IMF sees recent yen falls as reflecting fundamentals
▼ + stars: | 2023-10-14 | by ( Leika Kihara | ) www.reuters.com time to read: +1 min

Banknotes of Japanese yen are seen in this illustration picture taken September 23, 2022. "On the yen, our sense is that the exchange rate is driven pretty much by fundamentals. As long as interest rate differentials remain, the yen will continue to face pressure," Sanjaya Panth, deputy director of the IMF's Asia and Pacific Department, told reporters. Authorities in Japan are facing renewed pressure to combat a sustained depreciation in the yen , as investors bet on higher-for-longer U.S. interest rates while the Bank of Japan remains wedded to its super low interest rate policy. "I don't think any of the three considerations are existing right now," he said, when asked whether recent yen falls call for authorities to intervene in the currency market.

Persons: Florence Lo, Panth, Leika Kihara, Emelia Sithole, Mike Harrison Organizations: REUTERS, Rights, Monetary Fund, Pacific Department, Authorities, Bank of Japan, IMF, Thomson Locations: Rights MARRAKECH, Morocco, Asia, Japan

☆ IMF sees uncertainty over Japan's monetary policy, spillover globally
▼ + stars: | 2023-05-04 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

While most Asian central banks must keep tightening monetary policy, Japan remains an exception with inflation still moderate - though this could change. "There is uncertainty around the direction of monetary policy in Japan, amid a rise in inflation," Srinivasan said. "Changes in Japan's monetary policy that lead to further increases in government bond yields could have global spillovers through Japanese investors, who have large investment positions in debt instruments abroad," Srinivasan said. With inflation exceeding its 2% target, markets are rife with speculation the Bank of Japan (BOJ) could modify its bond yield control policy in coming months. The BOJ kept ultra-low interest rates on Friday but announced a plan to review its past monetary policy moves, laying the groundwork for new governor Kazuo Ueda to phase out his predecessor's massive stimulus programme.

☆ IMF urges Asia to keep monetary policy tighter for longer
▼ + stars: | 2023-04-13 | by ( Leika Kihara | ) www.reuters.com time to read: +2 min

REUTERS/Siphiwe SibekoSummarySummary Companies IMF revises up this year's Asia-Pacific growth f'castChina's reopening to underpin Asia's recoveryImpact of global banking stress on Asia limited - IMFWASHINGTON, April 13 (Reuters) - Asian central banks may need to keep monetary policy "tighter for longer" to combat still substantial inflation risks, senior International Monetary Fund official Krishna Srinivasan said on Thursday. The latest forecast implies the region will contribute over 70% of global growth this year, Srinivasan said. The IMF expects China's economy to expand by 5.2% in 2023, higher than the previous year's 3.0% growth. "China's reopened economy is rebounding strongly, and this will generate positive spillovers to its trading partners, providing fresh momentum for Asia's growth," he said. "Unless strains increase and raise broad-based stability concerns, central banks should separate monetary policy objectives from financial stability goals," he said.

☆ IMF is bullish Sri Lanka's crisis-stricken economy will recover as country gets bailout
▼ + stars: | 2023-03-21 | by ( Sumathi Bala | ) www.cnbc.com time to read: +4 min

We expect a contraction around 8% in 2022, a 3% contraction this year before the economy picks up next year." watch nowAs a result, Sri Lanka's debt levels have become unsustainable and inflation remains elevated, he added. "There are plenty of examples of IMF programs restoring stability, though these often come at the cost of painful austerity." Analysts have also argued Sri Lanka needs institutional reforms in order to achieve long-term debt sustainability. Critical reforms"Ambitious revenue-based fiscal consolidation is necessary for restoring fiscal and debt sustainability" in Sri Lanka, said Kistalina Georgieva, IMF's managing director.

☆ IMF board poised to approve $2.9 bln Sri Lanka bailout
▼ + stars: | 2023-03-07 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

WASHINGTON, March 7 (Reuters) - The International Monetary Fund on Tuesday said Sri Lanka had secured financing assurances from all its major bilateral creditors, paving the way for the IMF board to consider approval of a long-awaited $2.9 billion four-year bailout. Sri Lanka would get access to the first tranche of money shortly after board approval, sources close to the talks said. "Sri Lanka has now received financing assurances from all major bilateral creditors," Krishna Srinivasan, director of the IMF's Asia and Pacific Department (APD) said in a statement. Central bank Governor P. Nandalal Weerasinghe said last week that Sri Lanka had fulfilled its conditions with the rate hike and he was hopeful the IMF bailout would be approved this month. The IMF said the board's approval would help catalyze financing from other creditors, including the World Bank and the Asian Development Bank.

It was not clear what new support China, the world's biggest sovereign creditor, had extended to Sri Lanka on Monday. By end-2020, Sri Lanka owed the Export-Import Bank of China $2.83 billion or 3.5% of the island's external debt, according to IMF data. Sri Lanka needs to repay about $6 billion on average each year until 2029 and will have to keep engaging with the IMF, Wickremesinghe said. Countries in debt distress such as Zambia and Sri Lanka have faced unprecedented delays in securing IMF bailouts as China and Western economies have clashed over how to provide debt relief. Sri Lanka has been waiting for about 187 days to finalise a bailout after reaching a staff-level deal with the IMF.

☆ China's real estate crisis isn't over yet, IMF says
▼ + stars: | 2023-02-03 | by ( Evelyn Cheng | ) www.cnbc.com time to read: +4 min

China's real estate market has slumped in the last two years after Beijing cracked down on developers' high reliance on debt for growth. Future Publishing | Future Publishing | Getty ImagesBEIJING — China needs to do more in order to fix its real estate problems, the International Monetary Fund said Friday. Chinese authorities started to ease restrictions on financing for the sector over the last several months. Still, residential floor space sold in China dropped by nearly 27% last year, while real estate investment fell by 10%, according to official numbers. The IMF report pointed out that a significant portion of investors in Chinese developers' bonds have been affected.

☆ IMF cuts Asia's economic forecasts as China's slowdown bites
▼ + stars: | 2022-10-28 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

"Asia's strong economic rebound early this year is losing momentum, with a weaker-than expected second quarter," said Krishna Srinivasan, director of the IMF's Asia and Pacific Department. "Further tightening of monetary policy will be required to ensure that inflation returns to target and inflation expectations remain well anchored." The IMF cut Asia's growth forecast to 4.0% this year and 4.3% next year, down 0.9% point and 0.8 point from April, respectively. Among the biggest headwinds is China's rapid and broad-based economic slowdown blamed on strict COVID-19 lockdowns and its worsening property woes, the IMF said. The IMF expects China's growth to slow to 3.2% this year, a 1.2-point downgrade from its April projection, after an 8.1% rise in 2021.

☆ IMF urges most Asian central banks to tighten policy further
▼ + stars: | 2022-10-13 | by ( Leika Kihara | ) www.reuters.com time to read: +2 min

WASHINGTON, Oct 13 (Reuters) - Most Asian central banks must tighten monetary policy further as rising commodity prices and their currencies' depreciation, driven by steady U.S. interest rate hikes, push inflation above their targets, the International Monetary Fund said on Thursday. Many Asian currencies depreciated "quite sharply" as U.S. monetary tightening led to widening interest rate differentials, helping push up import costs for the countries, he said. Large currency depreciations and rising interest rates could also trigger financial stress in Asian countries with high debt, Srinivasan said. "Asia is now the largest debtor in the world besides being the biggest saver, and several countries are at high risk of debt distress," he said. Register now for FREE unlimited access to Reuters.com RegisterReporting by Leika Kihara; Editing by Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

☆ IMF sees Japan's currency intervention as 'signaling' move with short-term impact
▼ + stars: | 2022-10-13 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

Panth said Japanese authorities likely intervened last month with the view that the yen's "pretty sharp" moves could dampen corporate investment and hurt consumer confidence. "It was a fairly small amount given how liquid the market is," Panth said, referring to the size of Japan's intervention. Panth said he had not seen anything so far that suggests the yen's value is deviating from Japan's economic fundamentals. When looked at historically, the impact of these kinds of interventions doesn't last very long," he said. The intervention was a one-time event so far of relatively small magnitude in a deep market."

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