Question

In: Economics

Look at the IMF’s list of major world currencies. Make a strong case for removing one...

  1. Look at the IMF’s list of major world currencies. Make a strong case for removing one of those currencies. In addition, make a case for adding another currency.

In a graduate business course, do not rely on opinion. Find out what informed people think about this. Remember that tiny currencies from small countries would not go over well with a large international body.

Solutions

Expert Solution

International monetary fund is a major monetary system in world wide manner. which is main control and focus in the various rules and policies of international exchange of currency. Majorly globally developed economies like usa ,china ,india etc are listed in IMF. many other countries also listed and some other small countries currency not listed. As a large international body the IMF should give the equal importance in this currency listing. But here the reason regarding this is due to the SDR .SDR means special Drawing Right ,which determine the membership of each country on the basic of SDR quota. All member countries should maintain the 25% of SDR that need to pay in IMF .This SDR determines the currency which is transferable freely or not. So this is the major reason for this case the small countries not go over well with this IMF like international oraganisation.


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