Global economic restructurings need to be managed, can be managed: IMF chief
Oct 13, 2015 During a press conference at the annual Meeting of the IMF and World Bank, Christine Lagarde, managing director of the IMF said the ongoing global economic restructurings needed to be managed closely. She also stressed the importance of increased communication and experience sharing among policymakers globally.
“The slowdown of growth is a phenomenon that was predictable, expected and anticipated, and we believe that it’s a good move… a growth model that is no longer based on either massive export relative to domestic massive investment projects as opposed to consumption is a good transition.”
The Fund’s deputy managing director Zhu Min also responded affirmatively when asked if the Chinese currency will be included in the IMF’s Special Drawing Rights basket.
“We review the basket composition of the Special Drawing Rights every five years. The current review is very clear, as it excludes all the other currencies but the RMB, which is the only currency to be reviewed this time. This in itself highlights the importance of the RMB. The process is still going on. If the RMB is added to the basket composition of SDR, it will mark a milestone status for the currency in the global economy as it means an international recognition of the RMB,”