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Name: DEWAN JOHEB ZAMAN, ID: 2009-3-10-035

Business Communication, Bus 231 (Section 2)

Journal # 2, 11 Oct 2010

IMF-World Bank Meet Fails To Break Currency Ice

The two-day meeting of the International Monetary Fund (IMF) and the World Bank
concluded without finding any resolution to the currency issue. The currency issue was the
most discussed topic at the meet after the governance reform. At the centre of the currency
issue is that the US want exchange rates based on market fundamentals and want Chinese
Yuan to appreciate. On other hand, China, the fastest growing large economy in the world,
oppose the exchange rate of Yuan being determined by market forces.

While the planetary monetary grouping has evidenced resilient, tensions and vulnerabilities
rest as a termination of increment orbicular imbalances, continuing solid-state crowning
flows, mercantilism evaluate movements and issues attendant to the cater and accruement of
authorized reserves," the IMF commission said in a evidence after its gathering Saturday.
IMF calls on the Fund to process its impact in these areas, including in-depth studies to
support process the power of policies to control crowning flows. "There are frictions,
obviously. These are existence addressed. We hit become to the closing that the IMF is the
location to care with these issues." committee chair Youssef Boutros-Ghali said at the closing
of talks at IMF office in Washington.

A communiqué issued at the conclusion of the meeting said the IMF pledges to “deepen its
work” in areas including global imbalances and exchange rate movements, a function echoed
by a sort of Europeans and another officials. Recent IMF figures showed Beijing had
currency reserves of 2.447 trillion, the maximal in the concern and nearly 30 proportionality
of the orbicular total. Washington maintains that China purchases super amounts of dollars to
ready the Yuan unnaturally low, which distorts orbicular change by boosting Asiatic exports.

The direction ministers and bankers from the IMF's 187 member states, including the G20,
met in the US hoping for a consensus on the thorny discourse of monetary policies. But
China's top central banker Zhou Xiao chuan unloved demands for a hurried Yuan revaluation,
declaring that the evolving colossus would improve gradually kinder than vow in "shock
therapy."

Source: The Daily Star, 11 October 2010

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