Lagarde ask Asian economies to be on their guard

International Monetary Fund, IMF,  warned the world risked plunging into a downward spiral of financial instability and urged Asian economies to be on their guard. Speaking at the International Finance Forum in Beijing, the IMF chief Christine Lagarde said Asia was not immune to problems currently sweeping the eurozone. She is on a two-day visit to China and is likely to focus on the deepening debt crisis in Europe.

Lagarde  held talks with Chinese central bank governor Zhou Xiaochuan on the global economic situation. European leaders have called on China, which has the world's largest foreign exchange reserves at 3.2 trillion dollars, to invest in the fund. They have been discussing with China and other investors how to structure a special purpose investment vehicle and is exploring the possibility of linking it to the IMF.