Moon calls for IMF efforts to prevent financial crisis

Published : Nov 18, 2018 - 13:09 Updated : Nov 18, 2018 - 13:41

PORT MORESBY -- President Moon Jae-in on Sunday called on the International Monetary Fund to step up efforts to fend off growing instability in global financial markets, his office said.

In a meeting with IMF Director Christine Lagarde in Papua New Guinea, Moon expressed concerns that capital outflows from emerging economies and lack of global liquidity may trigger a worldwide financial crisis.

(Yonhap)

"In the course of major countries' normalization of their expansionary monetary policies, foreign exchange volatility is increasing, especially in emerging countries," Moon was quoted as saying during the meeting, held on the sidelines of the Asia Pacific Economic Cooperation summit.

"I request the IMF, as the central bank of the world, help emerging countries operate their systems for macroeconomic soundness and, as the lender of last resort, construct a strong global financial safety net by securing sufficient financial resources for loans."

Moon expressed concerns that the spread of trade protectionism and unbalanced growth may hurt the world economy and pose a huge challenge for emerging economies.

He noted South Korea took preemptive measures for currency market stability, including enhancing regulations on foreign currency-denominated credit and closely monitoring on external debts.

He also promised South Korea's continued support for the IMF's recent efforts to fight protectionism and promote multilateral trade, including reforms of the World Trade Organization, the presidential office said. (Yonhap)