China's Currency and IMF Issues
Andrew Mitchell & Jennifer Hawkins, 'China's Currency and IMF Issues' in David Donald (ed), The Renminbi's Changing Status and the Chinese and Hong Kong Financial System(s) (Thomson, Sweet and Maxwell, 2012)
33 Pages Posted: 18 May 2012 Last revised: 21 Apr 2015
Date Written: May 8, 2012
China’s currency policy is one of the most hotly debated subjects in recent international monetary history. This chapter sets out the current legal framework at the International Monetary Fund (“IMF” or “Fund”) governing its members’ exchange rate policies, and the global system of exchange rates. In doing this, the chapter notes the rationale underlying the current framework, assesses the IMF-consistency of China’s policies, and reviews proposed reforms of the framework. We conclude that it would not appear that China is in breach of its obligations under Article IV, Section 1, but that legitimate concerns have been raised over the adequacy of Section 1 with regards to members’ obligations and the Fund’s oversight role.
Keywords: International Monetary Fund, IMF, China, exchange rate policy, Yuan Renminbi, RMB, international law
JEL Classification: K33, F32
Suggested Citation: Suggested Citation