The International Monetary Fund warns of the “devastating” economic consequences of the conflict in Ukraine

The International Monetary Fund on Saturday warned of the “devastating” economic consequences of the continuing conflict in Ukraine. “While the situation remains extremely volatile and the outlook extraordinarily uncertain, the economic consequences are already very serious,” the IMF said in a statement, noting rising energy and commodity prices, including wheat and other grains. to inflationary pressures from supply chain disruptions and the recovery from the Covid-19 pandemic.”

The IFC added that in addition to the unprecedented sanctions against Russia, the escalation of the conflict has also caused a wave of more than a million refugees in neighboring countries. In its statement, the IMF said it plans to submit Ukraine’s $1.4 billion emergency funding request to its board early next week, and is in talks on financing options with neighboring Moldova authorities.

The same source recommends that “monetary authorities should carefully monitor the effect of rising international prices on domestic inflation, in order to calibrate appropriate responses.”

Referring to the situation for Russia, the International Monetary Fund stresses that the sanctions announced by Western countries against the Russian Central Bank will “severely limit its access to international reserves to support its currency and financial system.” “International sanctions against the Russian banking system and the exclusion of a number of banks from the SWIFT system have significantly disrupted Russia’s ability to receive export payments, pay for imports, and conduct cross-border financial transactions,” he added.

The International Monetary Fund warns that “countries that maintain very close economic ties with Ukraine and Russia are particularly at risk of shortages and disruptions in supplies and are the hardest hit by the growing influx of refugees.”