To be relevant, any discussion about the Fund’s strategic direction must take into account the financial risk to the Fund. Recent patterns of IMF loan exposures have triggered concerns about excessive credit and risk concentration in the IMF’s balance sheet. Exceptionally high access was often accompanied by prolonged use of Fund resources.
Except for an implicit devaluation of the Italian lira in January 1990, when that currency moved from the wide band to the narrow band, realignments ceased to be a characteristic of the system. In 1990, the remaining capital controls were eliminated by participating countries. German reunification required a tight monetary policy to counterbalance the large fiscal deficits generated by reunification.