In an interview with the Financial Times, Christine Lagarde, the IMF’s managing director, warned that the trade conflict between the United States and China could deliver a “shock” to emerging markets.
Although Lagarde noted that her staff does not yet see a rick of a contagion spreading beyond countries like Argentina and Turkey, which investors are already staying away from, she further argued that the situation could change rapidly amid the uncertainty and the “lack of confidence produced by threats against trade.”
Commenting on the economic crisis in Argentina, Lagarde explained that they were looking for their monetary policy to have “clarity, transparency, proper and due information to market operators, and improved communication.”
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