Getting it right

• Pages: 133

Page 133

Exchange rates affect many aspects of a country's economy and its relations with the rest of the world. For this reason, exchange rate issues occupy a central place in the IMF's analysis and advice to its 185 member countries-a process known as surveillance.

IMF staff considers its 2006 Article IV consultation with China an example of good practice in exchange rate surveillance. The report contains extensive coverage of key exchange rate issues, including the exchange rate regime, the level of the exchange rate, and the implications of China's exchange rate policies for other countries. The report highlights both the authorities' views and those of IMF staff.

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