The Idle Fireman
One of the IMF's main purposes is to “give confidence to members by making [its] general resources temporarily available to them.” But, because the Fund lacks the capacity to provide quick, automatic, meaningful, and front-loaded financial support to emerging economies facing external shocks, accumulating and pooling reserves has become a more reliable option for these countries.
https://prosyn.org/v3vQ4pj
WASHINGTON, DC – One of the IMF’s main purposes is to “give confidence to members by making [its] general resources temporarily available to them.” However, its members are increasingly facing capital volatility, and there is a sharp decline in the use of Fund resources. Ironically, this is happening at a moment when the Fund should want to be lending: it is awash in liquidity and has almost no sources of income other than repayment of its loans.