US Treasury Secretary Henry Paulson on Monday said that changes to the International Monetary Fund's foreign exchange monitoring policies show a renewed commitment to exchange rate surveillance.
"The revised decision sends a strong message that the IMF will put exchange rate surveillance back at the core of its duties and rigorously implement its rules on surveillance going forward," Paulson said in a statement.
The IMF earlier announced the first revision to its legal framework on currency surveillance since 1977 to reflect the sweeping changes in the global economy over the past 30 years, including the fast rise of China and India. The changes stipulate that in addition to avoiding currency manipulation and intervention, member countries should avoid policies that result in external instability.
Paulson, who has been trying to persuade China to allow more flexibility in setting the value of its yuan currency, added: "The revised decision also demonstrates that the IMF is serious about reforming itself and enhancing its legitimacy and relevance in today's global economic and financial system."
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