This article talks, as the title says, about India and its current investment in IMF notes. More specific, the amount of this investment is 10 billion dollars.
Together with Brazil and China, India has announced to buy the interest-yielding assets from the IMF (International Monetary Fund). These investments will help the IMF, known as lender of last resort, to boost its reserves which can be called on by members that need emergency cash.
Knowing there is a large need of emergency cash these days due to the global financial crisis, I think it is very important for the IMF these investments take place.
I think this will allow the IMF to proceed its activities even though they are struggling with this financial crisis. The article also mentions India expects more IMF votes and eased access to financing “as a quid-pro-quo for the purchase”.
In my opinion, these investments are certainly a step forward in the battle against ‘the crisis’. Knowing the IMF plays a big role in solving this crisis, it is logic all investments in the IMF will help when it comes to fixing the economy.
Yesterday, the IMF even announced there will be more economic leading powers that will continue to invest in the IMF. I think this proves leading powers have a lot of faith in the International Monetary Fund.
Article source: http://news.yahoo.com/s/afp/20100312/wl_sthasia_afp/indiaeconomybankimfinvest
Niels Roels
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I also think that investing in IMF is a good thing to do. Something has to be done about the crisis when it hits big to certain countries. So when rich countries invest in IMF it can help more countries in financial crisis.
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