IMF tries to position itself as new global central bank

BoyRacer · April 12, 2011, 5:34am

IMF says worth exploring borrowing from markets -> reuters.com/article/2011/04/ … NI20110408

(Reuters) - The International Monetary Fund said on Thursday it was worth exploring ways that the global institution could borrow from financial markets at short notice to raise additional funding for its lending programs.
In a paper that looks at progress by the Group of 20 major economies in reforming the global monetary system, the Fund said building confidence in the IMF’s ability to respond to crises may warrant looking at alternative ways of fund-raising, including turning to markets.

NEW ROLE FOR SDR

Among issues being explored to update the global monetary system is whether or not to include the Chinese renminbi in a basket of currencies that make up the IMF’s special drawing rights – an international reserve asset of the IMF.
The basket is currently made up of the dollar, euro, pound sterling and the yen. Created in 1969, it does not reflect the rising importance of China.
One of the biggest obstacles to the SDR playing a bigger role in the global financial system was technical challenges and a “great deal of consensus-building and policy coordination,” the IMF report said.
The report said most of the ideas being considered to remake the global monetary system would require more collaboration among countries. In addition, some proposals would take time to implement, the report said, suggesting it could be a while before a new monetary system is rolled out.
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