Monetary Policy in China

in Currency Market

When China’s monetary policy is analyzed, one thing stands out presently – there is a continued incline in importation of products into China at a rate higher than the exports growth. Secondly, after the peg of the Chinese Yuan to the dollar, the Chinese currency’s real trade-weighted value declined. This is notable mostly since the beginning months of 2002, at a time when the US dollar reached its peak value. China is a great economy in the making. At this point in time, the metrics of China’s currency are largely undervalued and others unlisted. China’s Current Account has been growing at a steep surplus since 2007. For instance, the current account ran at US$17 billion last budget year as compared to US$4.6 billion in 2001. That is giant leap in just six years. This ensues in a 1.5 percent growth in Gross Domestic Product, an outstanding feat for such a massive economy. To...

Introduction to The International Monetary Fund

in Currency Market

In a way, the IMF has been successful since it was established back in July, 1944. From its genesis, it has consistently worked to foster optimal global monetary cooperation for the general good of member states. The aim has been to secure the financial stability of world nations and facilitate a mutually benefiting international trade among these nations. This in return could boost both poverty reduction measures and promote high employment. With criticism to the institution considered, the International Monetary Fund has helped instigate a sustainable economic growth in most member states, apart from the third world countries which continue to trade in complete dependence of the international market. The International Monetary Fund (IMF) was a Bretton-Woods brainchild as an international organization that regulated economic policies in member countries that impact on both the...