The Fed's policy shift must take place "in a proper manner," Indonesian finance chief Chatib...

|By:, SA News Editor

The Fed's policy shift must take place "in a proper manner," Indonesian finance chief Chatib Basri says, summarizing one of the issues discussed at a meeting of G-20 finance ministers and central bankers in Moscow. The group has committed to controlling any spillover from developed market tightening to emerging economies where yields soared and equities collapsed after Bernanke dropped the taper hint in June. The official statement also pays lip service to the destabilizing effect abrupt policy changes may have on emerging-market currencies. "We reiterate that … disorderly movements in exchange rates have adverse implications for economic and financial stability," the group notes.