No matter that it is confirmed by observation the world over. Not just in the Caribbean, but in regions scattered across the globe, there is a tendency for currencies to cluster around large attractors in their neighbourhood; in Europe it is the euro, in the Americas the dollar, in Southern Africa the rand, in the Indian Sub-continent the rupee.
Specifically in this context, the IMF is well-placed to analyse issues like reserve accumulation and the evolution of exchange rate regimes in emerging markets, to take due account of their global implication. Finally, it is important to review the financial position of the IMF and the implications of lower lending activities on the Fund’s operational budget.