Naoyuki Shinohara, a deputy managing director of the International Monetary Fund, on Friday said greater exchange rate flexibility would help protect emerging market countries from growing capital inflows.

At a conference in Colombo, Sri Lanka, Shinohara said: "Greater exchange rate flexibility can offer an important buffer against the risk… that large capital inflows may undermine efforts to tighten the monetary stance. With global interest rates likely to remain low, countries with tightly