MOSCOW (Pakistan Point News / Sputnik - 21st November, 2020) Devaluation of national currencies during the global COVID-19 pandemic is a major risk, especially for low-income countries, Russian President Vladimir Putin said on Saturday at the G20 summit.
During his speech at the summit, Putin said by using debt instruments in domestic Russian market and by utilizing reserves accumulated by the country, the government was able to finance measures to support the economy and citizens of Russia during the pandemic. However, developing economies and a number of countries with an emerging market economy lack such opportunities, the Russian president added.
"Their fiscal revenues have decreased significantly, and the need to allocate significant funds to fight the pandemic is growing almost every day. A major risk is posed by the devaluation of national currencies and, accordingly, an increase in the cost of servicing public debt - primarily for low-income countries, where two-thirds of loans are in Dollars," Putin said.
