BRICS: West's monetary policy sparks huge capital volatility
New Delhi: Aggressive monetary easing by western central banks to revive growth in their economies is hurting emerging nations which are facing a rush of destabilizing capital inflows, a draft declaration by the BRICS group of five nations showed Thursday.
Excessive liquidity because of the central bank actions "has been spilling over into emerging economies, fostering excessive volatility in capital flows and commodity prices," according to the document.
According to the document, Brazil, Russia, India, China and South Africa, which form the BRICS group, want steps to avoid escalation of the Iran oil crisis and favored a diplomatic resolution to the problem.
Heads and several ministers of these five countries are attending the fourth BRICS summit in New Delhi that seeks to deepen ties and broaden co-operation among the member countries to foster growth when the global economy hobbles in uncertainty.