From: Zhejiang Online
Compiler: http://www.fundcn.org

Experience shows that the exchange rate adjustment of external imbalances resolved to a certain extent, but not fundamental and the only policy tool. Substantially disorderly exchange rate adjustment would not only exacerbate the external instability, it will also affect a country’s sustainable economic growth. in turn affect the global economy and continued growth in the international financial market stability.

Xinhua recently from the International Monetary Fund Directors will understand that, IMF Executive Directors on June 15 passed the “bilateral policies of member countries by the authority’s decision” ( “decision “), as enacted in 1977 to replace the” exchange rate policy oversight of the decision. ” As the “decision” does not fully reflect the views of the developing countries, China has expressed reservations about it.

As the international monetary system core agencies, the Fund’s purpose is to maintain international monetary system and the global financial system’s stability. The current international monetary and financial system is the changes in the global economy and the allocation of production factors such as changes in the fundamental backdrop gradually taken shape. IMF member countries of supervision policy should take full account of economic globalization, the industrial division of adjustment and technological progress for the current global economic foundation, attention to domestic economic stability and external stability of the relationship, objective look at the exchange rate policies of a country to realize the role of external stability, strengthen the global systemic stability is crucial to the issuance of the main reserve currency of the member states policy oversight.

In the past few years, including China, which many developing countries committed to the restructuring of the domestic economy. improve the market mechanism and increase the flexibility of the exchange rate, promote the global economy grew rapidly. Experience shows that the exchange rate adjustment of external imbalances resolved to a certain extent, but not fundamental and the only policy tool. Substantially disorderly exchange rate adjustment would not only exacerbate the external instability, it will also affect a country’s sustainable economic growth. in turn affect the global economy and continued growth in the international financial market stability.

China and other developing countries, the IMF supervision in the implementation of bilateral should abide by the broad consensus of the important principles consider the specific circumstances of member countries, not to increase the obligations of Member States to achieve a fair oversight. With the Member States through the strengthening of communication and dialogue, mutual understanding and respect on the basis of oversight functions. maintenance of the global economic and financial stability.

Copyright Fund China 2009.

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