Number: RS22658
Title: Currency Manipulation: The IMF and WTO
Authors: Jonathan E. Sanford, Foreign Affairs, Defense, and Trade Division 
Abstract: The International Monetary Fund (IMF) and World Trade Organization (WTO) approach the issue of "currency manipulation" differently. The IMF Articles of Agreement prohibit countries from manipulating their currency for the purpose of gaining unfair trade advantage, but the IMF cannot force a country to change its exchange rate policies. The WTO has rules against subsidies, but these are very narrow and specific and do not seem to encompass currency manipulation. Several options might be considered for addressing this matter in the future, if policymakers deem this a wise course of action.
Pages: 6
Date: May 8, 2008