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Volatility ‘going to be a challenge’: Mexico FinMin

Market volatility will remain high as the U.S. moves closer to raising interest rates, and could pose difficulties for emerging markets, Mexico's Finance Minister told CNBC on Tuesday.

"The fact that U.S. rates are going to go higher as an indicator of stronger U.S. growth is a good thing, but having said that, the volatility that comes along with that, particularly for emerging markets is going to be a challenge," Luis Videgaray Caso told CNBC in Washington D.C., where politicians and economists had gathered for the annual meeting of the International Monetary Fund.

Global stock markets have wobbled at every hint that the U.S. Federal Reserve might be gearing up to raise benchmark rates from their record-lows, as the country's economic recovery picks up steam. Currency markets have also been hit.

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In its latest minutes, published last week, the Fed reiterated that rates would not rise until "a considerable time" after the monthly bond-buying had ended, which is expected at the end of this month.

However, markets have continued to wobble, and the VIX—a popular measure of the volatility of the U.S. benchmark S&P 500 index—hit a 22-month high of 22.46 on Monday.

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Regarding the volatility, Videgaray Caso added: "We are in better shape than some other emerging markets, but still it's going to be a significant challenge."