IMF Work Program Focuses on Restoring Stability, Growth, and Jobs

On May 29, 2012, the Executive Board of the International Monetary Fund (IMF) considered the IMF's bi-annual work program through November 2012. Recent developments point to the continued fragility of the world economy and the risks of renewed stresses with potentially systemic consequences. In this context, the work program focuses on issues to help restore global economic stability and confidence and to rekindle growth and job creation.

“The commitment to increase Fund resources by over 0 billion on a temporary basis attests to the membership’s willingness to act collectively and decisively to get ahead of the crisis,” IMF Managing Director Christine Lagarde said in presenting the work program to the Executive Board. “For our part, we must continue to support these efforts with clear and pointed advice on macro financial policies, and strong and well-designed programs. This is true not only for Europe, where the risks to stability have been acute, but across the span of the membership,” Ms. Lagarde emphasized.

An important challenge, in this context, is to enhance inclusive growth, while ensuring debt sustainability. The Fund will provide analysis and policy advice on achieving credible fiscal consolidation and government debt reduction, an issue germane to many members, while supporting growth. Analytical work is also underway on issues related to jobs and growth in Fund surveillance and programs.

“We need to continue to offer pragmatic remedies to the main risks confronting the global economy, help members address spillovers, and support their economic transitions and development agendas. We need also to strengthen our internal processes, with reforms of surveillance, quotas and governance,” Ms. Lagarde concluded.

The work program, published today, prioritizes efforts in these areas, including:

• Restoring stability and strengthening policy advice, including on the continued repair and reform of the financial sector, and on various aspects of growth and employment;
• Assessing the experience with Fund conditionality and drawing lessons for new programs;
• Stepping up support for Arab countries in transition;
• Assisting low-income countries with policy advice and financial support, including issues such as rebuilding buffers while meeting development needs, managing natural resource wealth, assessing experience to date with the comprehensive reform of facilities, and securing the longer-term sustainability of concessional financing;
• Promoting the long-term stability of the international monetary system, including improvements in the Fund’s surveillance framework, to help prevent future crises; and
Implementing the 2010 quota and governance reform that will enhance the legitimacy and effectiveness of the Fund.

Source | International Monetary Fund - Blog NEWS | http://imf-news.blogspot.com/2012/06/imf-work-program-focuses-on-restoring.html

Dollar falls before US jobs data

he dollar fell against the euro and yen on Friday as investors awaited a key US employment report amid tentative signs of a recovery in the world's largest economy.

In late morning trading here, the European single currency rose to 1.4361 dollars from 1.4347 dollars in New York late on Thursday.

Against the Japanese currency, the dollar dropped to 95.41 yen from 95.44 yen late Thursday.

All eyes were on Friday's non-farm payrolls data in the United States amid mounting hopes that the pace of job losses there was slowing.

"Optimism is growing that the (US) economy has hit bottom and that it has exited the worst of the downturn. The market is out of its phase of utter hopelessness," said Hachijuni Bank foreign exchange strategist Masatsugu Miyata.

But he noted that the picture was not entirely rosy, with consumer spending and retail sales still sluggish.

The euro edged up following a fall on Thursday after the European Central Bank left its key interest rate unchanged at a record low 1.0 percent.

Dealers noted that ECB president Jean-Claude Trichet voiced confidence about the prospects for an economic recovery but also warned that the outlook remained uncertain.

Source | Forex Update | http://adeel-forex-update.blogspot.com/2009/08/dollar-falls-before-us-jobs-data.html