CNB attends the IMF Annual Meeting
Czech National Bank Governor Aleš Michl, Bank Board Member Karina Kubelková and other central bank representatives last week attended the Annual Meeting of the International Monetary Fund (IMF), where they represented the interests of the Czech Republic. One of the main topics discussed was the stabilisation of economies.
“I join the effort to support stability. Our communications and our actions must be clear. It’s vital now that the institution itself does not create volatility but reduces it for as long as is necessary, in order to confirm its credibility and the trust you put in the Czech National Bank. The national bank now needs to be a firm anchor stabilising conditions in the economy,” said Governor Aleš Michl.
The Annual Meeting, held from 10 to 16 October 2022 in Washington, was closed by a plenary session of the International Monetary and Financial Committee (IMFC), which is a key body in the debate on the IMF’s strategic direction.
The IMFC session ended with a call on Russia to end its invasion of Ukraine. “Peace is the most important economic policy tool right now,” said Nadia Calviño, IMFC Chair and Spain’s First Vice President and Minister for Economy and Digitalisation. “Our priorities are to fight inflation and to protect the most vulnerable populations while managing economic vulnerabilities,” Calviño said in a statement.
The conclusions of the debate provide guidance for the IMF’s work during the next half year.
The International Monetary Fund (IMF) was established at a conference in Bretton Woods (New Hampshire, USA) in July 1944. The World Bank Group (WGB) was also created at this conference. Headquartered in Washington, D.C., the IMF currently consists of 190 countries. According to the IMF Articles of Agreement, the IMF’s main purposes are:
- to promote international monetary cooperation;
- to facilitate the expansion and balanced growth of international trade;
- to promote exchange stability;
- to assist in the establishment of multilateral systems of payment;
- to make its resources temporarily available to members experiencing balance of payments problems;
- to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members.
The Czech Republic has been a member of the IMF since 1993. One area of cooperation between the Czech Republic and the IMF is the Article IV consultations, the aim of which is to assess the state of the Czech economy and to submit recommendations for its further development. For details see the CNB’s relations with the MMF.
The IMF Annual Meetings are held every year, traditionally in Washington. Approximately once every three years, the meeting is hosted by one of the member countries. In 2020, it was held in Prague.
The International Monetary and Financial Committee (IMFC) is a key body in the debate on the IMF’s strategic direction. It advises and reports to the IMF Board of Governors on the supervision and management of the international monetary and financial system, including on responses to unfolding events that may disrupt the system. It also considers proposals by the Executive Board to amend the Articles of Agreement and advises on any other matters that may be seen as relevant by the Board of Governors. The IMFC usually meets twice a year, at the Spring and Autumn Meetings of the IMF. For each meeting, the Managing Director of the IMF prepares an agenda that is discussed by the Executive Board and approved by the IMFC Chair. The agenda is then formally adopted by the IMFC at the meeting. At the end of the meetings, the IMFC issues a communiqué providing guidance for the IMF’s work during the next half year. Since January 2022, the IMFC has been chaired by Nadia Calviño, Spain’s First Vice President and Minister for Economy and Digitalisation.
Petra Krmelová
Director of the Communications Division and CNB Spokesperson
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