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MercoPress, en Español

Montevideo, November 22nd 2024 - 05:22 UTC

Tag: Short-term Liquidity Line

  • Thursday, April 23rd 2020 - 08:46 UTC

    The Short-term Liquidity Line: A New IMF Tool to Help in the Crisis

    SLL is designed to address a special balance-of-payments need, potential, moderate, and short-term—reflected in capital account pressures following external shocks.

    By Geoffrey Okamoto – The COVID-19 pandemic has severely disrupted the global economy at every level. Across the world, financial conditions have tightened dramatically, with unprecedented portfolio outflows from emerging markets in terms of both size (a record of about US$100 billion) and speed, and markets effectively frozen in some cases. This has created sizable demand for U.S. dollar liquidity, with emerging markets facing sharp liquidity shortages.