Asset bubbles not a risk in emerging markets - IMF

Published 10/05/2010, 10:04 AM
Updated 10/05/2010, 10:08 AM

WASHINGTON, Oct 5 (Reuters) - The International Monetary Fund does not see asset bubbles becoming a major risk in emerging economies but there are 'hot spots' that require close monitoring, a senior IMF official said on Tuesday.

Jose Vinals, IMF director of the monetary and capital markets department, also told a new conference that a current appreciation in exchange rates was not a major concern for financial stability.

"Volatility in currency markets has always been there ... but the important thing is markets do not go into episodes of excess volatility or turbulence," Vinals added. (Reporting by Lesley Wroughton; Editing by James Dalgleish)

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