Emerging markets preempted global rate hikes: Colombia's ex-Finance Minister
Mauricio Cardenas, Colombia's former Finance Minister, said that rising interest rates in advanced economies pose challenges for emerging markets, adding that, however, these countries were well prepared to face them.
In an interview with Argaam on the sidelines of the AlUla Emerging Markets Conference, Cardenas added that several emerging economies preceded advanced economies in raising interest rates, which partially offset the impact of recent rise in global interest rates on them.
Some emerging economies such as Indonesia, India and Mexico have already begun to cut interest rates this year, even though the US Fed has not, due to improved local economic conditions that have allowed growth to be stimulated, said the former minister.
He pointed out that the biggest challenge now is the uncertainty surrounding the new US economic policies, which may affect capital flows, the dollar value and global trade.
Cardenas also stressed that many central banks in emerging markets are adopting a wait-and-see approach until the situation in the US economy evolves.
Cardenas hailed the AlUla Emerging Markets Conference, stressing the importance of these countries joining hands as one bloc in a world witnessing high levels of uncertainty, especially in the field of trade, which is a major driver of development.
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