Central to the IMF’s purposes and operations is its oversight of the effective operation of the international monetary system. Accordingly, the IMF’s Articles of Agreement direct it to exercise firm surveillance over the exchange rate policies of its member countries. To carry out this mandate, the IMF typically analyzes the appropriateness of each country’s economic and financial policies for achieving orderly economic growth and assesses the consequences of these policies on other countries and for the global economy. In recent years, fundamental shifts in the global economy—such as the rapid growth of private capital markets, increased regional and monetary integration, and the implementation of current account convertibility and market-oriented reform in many countries—have heightened the importance of effective and timely surveillance. These changes are being mirrored in increased responsibilities for the IMF (see Box 6).
International Monetary Fund Copyright © 2010-2021. All Rights Reserved.