Ukraine Conflict, Sanctions Decreased Banking Flows To Russia, Allies By 20%-60% - IMF
Muhammad Irfan Published April 05, 2023 | 06:30 PM
WASHINGTON (UrduPoint News / Sputnik - 05th April, 2023) The conflict in Ukraine and the sanctions imposed by the collective West on Russia have reduced cross-banking and portfolio debt flow allocations to Moscow and its allies by between 20% and 60%, the International Monetary Fund (IMF) said in its new Global Financial Stability Report on Wednesday.
"After Russia's invasion of Ukraine and the subsequent sanctions imposed by the United States and European Union on Russia, cross-border banking and portfolio debt flows to Russia and its allies (countries that rejected the motion in the United Nations in March 2022 to condemn Russia's war on Ukraine) have reversed sharply, with allocations falling by about 20 and 60 percent relative to prewar levels, respectively," the report said.
The IMF warned in the report that geopolitical tensions, which have risen in recent years, have increased restrictions on cross-border capital flows.
The geopolitical tensions are a factor that could have adverse implications for macro-financial stability, the report said.
"Imposing financial restrictions, or increased uncertainty and risk aversion generated by geopolitical tensions, could exacerbate global financial fragmentation as international investors reallocate investment portfolios and credit lines away from geopolitically more distant countries," the report said.
The resulting situation could trigger a sharp reversal of capital flows and a decline in asset prices, with associated consequences for macro-financial stability, the report added.
In the long term, countries may become more vulnerable to adverse domestic and external shocks because of increased financial fragmentation, according to the report.
Related Topics
Recent Stories
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 28 April 2024
Today Gold Rate in Pakistan 28 April 2024
Fresh wave of rainfall in AJK continues for the second consecutive day
Babar, bowlers help Pakistan level series 2-2 against New Zealand
Attack in restive Chilean province leaves three police officers dead
PM, Saudi Royal court advisor discuss ways to boost economic ties
England clinch third successive Women's Six Nations Grand Slam
DC Bahawalnagar leads fight for fair bread prices
Sheffield Utd relegated from Premier League
02 proclaimed offenders arrested by Wah Police
Pakistan level T20I series with nine-run victory over New Zealand
Minister meets Chinese Consul General, discusses bilateral cooperation, Chinese ..
More Stories From World
-
Football: French Ligue 1 table
1 hour ago -
Inter continue Serie A title party as Bologna slip in Champions League bid
1 hour ago -
Paris Saint-Germain win Ligue 1 title after Monaco defeat
2 hours ago -
Man City see off Forest to close on Premier League leaders Arsenal
2 hours ago -
Italian PM Meloni says will stand in EU elections
3 hours ago -
Masood Khan hails Pakistani-American physicians role in upgrading Pakistan's healthcare system; also ..
3 hours ago
-
Celtic down Dundee to stay on course for Scottish Premiership crown
3 hours ago -
Ireland will act to send asylum seekers back to UK: PM
3 hours ago -
Kainz keeps Cologne's hope alive with late equaliser at Mainz
3 hours ago -
Tennis: ATP/WTA Madrid Open results - 1st update
4 hours ago -
Inter continue Serie A title party as Bologna slip in Champions League bid
4 hours ago -
Masood Khan hails Pakistani-American physicians role in upgrading Pakistan's healthcare system; also ..
4 hours ago