| Inner City Press Asked IMF
of Renminbi and Kenya Now Answer
Here
by
Matthew Russell Lee
NYC,
Nov 13 –
When the IMF held its biweekly
embargoed press briefing on
November 13, Inner City Press
was able to ask the Fund's
spokesperson Julie Kozack
about lobbying by US banks
against cryptocurrency
platforms paying interest or
yield under the GENIUS Act,
about the market structure
legislative proposals by
Senators Boozman and Booker,
and stablecoins. Also, about
Kenya and renminbi.
Now an answer, by
an IMF spokesperson:
Interest rates
that apply to borrowing in
currencies other than the USD
(e.g. the renminbi or the
Swiss franc) are currently
lower than those that apply to
borrowing in USD, which can be
explained by differences in
market expectations about the
likely change in relative
exchange rates. This could
help governments reduce or
limit their interest bills.
However, these operations
could carry important risks –
for instance if the borrowing
country generates more income
in USD relative to the
borrowing currency, or if
there is more exchange rate
volatility associated with the
borrowing currency – that
could change the relative
costs ex-post if these risks
materialize. Such operations
may also entail significant
transaction costs. Hence, such
transactions need to be
carefully assessed within a
comprehensive medium-term debt
and reserve management
strategy.
It's
appreciate. On crypto, Ms.
Kozack said overall that
stablecoins will have a major
impact on international
payment systems, and praised
secured assets over unsecured
- she named Bitcoin as the
example.
She also
said that the IMF's Article IV
consultation with the US has
been delayed, citing the
government shutdown ended on
November 12.
Presiously, IMF
spokesperson Kozack in
response to Inner City Press'
July questions on crypto
offered some praise and some
cautions. Video.
Inner City
Press also asked in July if El
Salvador is in fact merely
moving Bitcoin it already owns
between its own wallets,
rather than buying more - that
seems to be the case. Video
More video,
including of
November 13,
coming on
IMF's website.
***
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