The Magazine for Asian Investors
International Monetary Fund (IMF) Managing Director Kristalina Georgiava warned that the Federal Reserve’s interest rate hike could hurt economic recovery in some countries.
The Fed’s rate hike will hurt a country with a lot of dollar debt because it will make those countries pay more expensive debt.
Ms. Georgia suggested that countries with dollar debt extend the repayment period or implement currency swaps to avoid impacts.
It is important that the Fed clearly communicate its policy plans to avoid market panic.