WASHINGTON, Oct. 10 (Xinhua) -- The exit from unconventional monetary policies in some developed economies may induce higher volatility in global financial markets, said a group of 24 developing countries on Thursday.
"We call on advanced economies to be mindful of negative spillover and to clearly communicate their exit strategies," said the Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development (G24) in a communique after its 90th meeting in Washington D.C.
In addition, the U.S. political stalemate over debt limit left its default risk open, which added uncertainty to global financial stability.
"We are expecting that there will be a prompt solution that will diminish the volatility in the financial markets," said Fernando Aportela, the group's chair and deputy minister of Finance and Public Credit of Mexico.
If the U.S. failed to raise the debt ceiling on time, "it would be a disaster," said Amar Bhattacharya, director of the G24 Secretariat.
Last time when the U.S. had the debt ceiling problem in 2011, the interest spreads in developing markets went up by 75 basis points and stock markets went down by 15 percent, said Bhattacharya. He added if there is a default, the potential impact on the global financial market is "unthinkable".
The group also said in the communique that emerging markets and developing countries have enormous growth potential and will continue to be the driving force of the global economy.
And on behalf of the developing world, it called on the International Monetary Fund to enhance their voice and representation by implementing the agreed 2010 quota and governance reform.