IMF staff encourage central Asian economies to overcome ‘fear of floating’
Central banks should resist urge to intervene, authors say
Caucasus and central Asian economies need to throw off their "fear of floating" if they are to enjoy the benefits of fully flexible exchange rates, according to a team at the International Monetary Fund (IMF).
Currencies in the region have had a rough ride as falling oil prices, regional instability and slowdowns in the Russian, Chinese and European economies have made their presence felt in foreign exchange markets.
In such an environment, flexibility plays an important "shock-absorbing" role
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