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China's Monetary Policy & IMF

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China's Monetary Policy & IMF
Chenxin Pan
Class Time: 2:00
Briefing paper #2
Related Chapter: 11
China’s Monetary Policy and IMF
Outline
I. Intro
A. IMF and China
B. In this paper, I will discuss…
II. Body
A. China’s monetary system
PBOC
Open Market Operation
RRR
B. 1994 “Monetary” Crisis in China
Background and causes
Phenomenon and effects
IMF’s response and action
C. 1997 East Asian Crisis
Summary of what happened
China’s action
Build up official reserves
Don’t have to borrow from IMF
Keep exchange rate competitive
D. China’s contemporary monetary policy and regulation
Monetary Policy Committee
Policies (interest rate, RRR, foreign reserves...)
Risks
IMF’s involvement
Recent monetary reform
III. Conclusion
A. Future of China’s economy
International Monetary Fund is an organization that consists of 188 countries, in which countries work together to promote global monetary cooperation, secure financial stability, and sustainable economic growth around the globe. IMF serves as an international bank, loaning money to member countries due to economic difficulties; and as an adjudicator, reconciling economic conflicts between countries. It’s a pool of central bank reserves and national currencies that allows member countries to borrow. China joined IMF in 1945, and has twice used IMF credits, in 1981 and in 1986. China holds annual consultations with IMF on economic development and policy issues. In recent number of years, China has been accused of currency manipulation and excessive foreign reserves to underpin economic growth. It has been an issue of concern of IMF, and it has warned China and forced China to make policy reforms. In this paper, I will begin with China’s monetary system, 1994 monetary crisis, and then discuss China’s current monetary policies, reforms, and IMF’s regulation on China.
China regulates its monetary system through PBOC (People’s Bank of China) by adjusting interest rate, performing open market operation, and manipulating Reserve


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