The Institute of National Planning holds the third scientific follow-up seminar on the “Global Financial Stability Report” entitled “Overcoming the Inflation Environment”

The Institute of National Planning holds the third scientific follow-up seminar on the “Global Financial Stability Report” entitled “Overcoming the Inflation Environment”

The Institute of National Planning held three scientific follow-up activity workshops, in which Dr. Shereen Bushra Ghaly, Lecturer at the Center for Macroeconomic Policy, presented the Global Financial Stability Report: Navigating the High Inflation Environment, issued by the International Monetary Fund in October 2022. The session was moderated by Prof. Aziza Abdel Razek, activity coordinator and scientific supervisor.

The presentation dealt with an assessment of the global financial system and global markets, as well as methods of financing emerging markets in a global context. The report also stated that the risks of financial stability are constantly exacerbating, amid the highest inflation rates the world has witnessed in decades, and amid weak market liquidity, as the risks of sudden and uncontrolled tightening of financial conditions increased, especially in emerging markets, in which high interest rates and large outflows led to Higher borrowing costs, with an increased risk of default.

In this context, the report recommended the need for central banks to move towards returning inflation rates to their target level, preventing the exacerbation of inflationary pressures, and continuing to work on activating the role of monetary policy as a decisive step in maintaining credibility and avoiding unjustified market volatility. Borrowers in developing economies should seek to contain the risks associated with their high debts, including through early contact with their creditors, multilateral cooperation, and seeking support from the international community.