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Southern Voices for Change in the International Aid System Project

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IMF Surveillance decision hits developing countries' policy space

Source: Choike

Last June, after over a year of review, the International Monetary Fund (IMF) modified its main guidelines on the implementation of Article IV of its Articles of Agreement. The guidelines, issued originally in 1977, regulated the Fund's role in exercising surveillance over the exchange rate policies of member countries. It was probably not a surprise that the recent revision of the rules that guide its surveillance of members' exchange rate policies reduces policy space for developing countries.

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