Monitoring global and domestic developments in the wake of coronavirus epidemic, says RBI

The Reserve Bank today said that it is monitoring global and domestic developments closely and continuously in the wake of the coronavirus (COVID-19) epidemic, which has triggered financial instability across all global markets. In a statement issued from Mumbai, RBI said it is prepared to take all appropriate actions to ensure the orderly functioning of financial markets, maintain market confidence and preserve financial stability.

RBI in its release said, "Globally, financial markets have been experiencing considerable volatility, with the spread of the coronavirus triggering risk-off sentiments and flights to the safe haven. Spillovers to financial markets in India have largely been contained." It added, "Growing hopes of coordinated policy action to mitigate broader fallout to economic activity has boosted market sentiment today".

Coronavirus

The Novel Coronavirus was first reported in late December in China and since then the death toll in China has climbed to 2,943 with 31 more deaths while 125 new confirmed cases were reported, the lowest since the virus outbreak in the country, Chinese health officials said today even as the total number of deaths is crossing 3,000 globally and infections surging past 89,000. Post its breakout, the epidemic has spread in other countries as well especially Italy, Iran, South Korea and Japan, have seen an alarming rise.

World Health Organization on Coronavirus

According to the World Health Organization, there are 89,527 confirmed COVID-19 cases and 3,056 deaths reported globally in 67 countries. In terms of confirmed cases in China, officials said Monday's numbers were the lowest since the country began to report about the Coronavirus epidemic, showing signs of stabilizing, especially in the Chinese mainland.

WHO Director-General Tedros Adhanom Ghebreyesus has tweeted that understanding of the epidemic is the first step to defeating it. We have never before seen a respiratory pathogen that is capable of community transmission. He said the infection spreads from person to person mainly through the droplets produced when an infected person speaks or coughs or sneezes. WHO has been advising countries to take actions on the first case, first cluster, the first evidence of community transmission.

Meanwhile, six people died of the deadly virus in the United States and South Korea reported 29 COVID-19 deaths. In Japan, 12 people died of the disease. Italy reported a jump in the death toll to 52, with more than 2,036 people infected with the virus.

In Iran, the virus has claimed 66 lives, while confirmed cases climbed to more than 1,500. Three people have died of the disease in France, while the confirmed cases increased to 191.

India on Monday reported two fresh cases of COVID-19, one from the national capital Delhi and another in Telangana.

International Monetary Fund (IMF) on Coronavirus

International Monetary Fund (IMF) in the last week of February 2020 warned that the deadly coronavirus epidemic could put at risk the recovery of an already fragile global economy. IMF chief Kristalina Georgieva said - at a two-day meeting of G20 Finance Ministers and central bank governors in Riyadh - that global growth is poised for a modest rebound to 3.3 per cent this year, up from 2.9 per cent last year.

Speaking after a two-day meeting in Riyadh, she said the projected recovery is fragile. Georgieva said the COVID-19 virus - a global health emergency - has disrupted economic activity in China and could put the recovery at risk.

G7 finance officials pledge on coronavirus

Group of Seven finance officials today said that they would take all possible steps to safeguard the global economy from spreading COVID-19 outbreak. On a conference call, the group of the rich nations' finance ministers and central bank governors pledged all possible actions including fiscal measures where appropriate to support the global economy, Japanese Finance Minister Taro Aso said. He said the desirable policy response would vary from country to country.