The global economic and financial crisis has struck emerging market currencies, yet Dr. Alexander Mirtchev, founder and chairman of the Krull Corporation and a transitional economy expert, believes that central banks in the emerging markets should resist the temptation to restrict currency flows. Despite the volatility in the foreign exchange markets and the negative impact on emerging market currencies, Mirtchev believes that FX restrictions would hinder the prospects of a sustainable recovery. “Maintaining liquidity is an obvious factor in alleviating some of the pressure on the markets,” Mirtchev said, “and any ‘quick-fix’ moves by central banks in rapidly developing economies to restrict currency flows could turn out to be a faux pas. In the short-term, we are seeing losses, but as the markets stabilize, equity and capital investments remain the fastest way to stimulate growth.”
