Story perspectives
IMF Warns: FX Market Volatility Demands Stronger Liquidity Measures
10/8/2025
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Story summary
- The foreign exchange market (FX market) handles daily turnover near $10 trillion, underpinning global trade and finance.
- Rising global uncertainty raises demand for safe-haven assets, driving volatility.
- Non-bank financial institutions (NBFIs) play a significant role, but their activity heightens market fragility during stress.
- The International Monetary Fund (IMF) urges liquidity maintenance and enhanced stress tests to prevent disruptions.
