The Chinese government has been hesitant to revalue the yuan out of concern over the negative impact revaluation would have on the domestic economy. To maintain a stable exchange rate, however, the authorities have had no choice but to tolerate large balance of payment surpluses and a rapid...

Produced since 2012, the IMF's annual External Sector Report analyzes global external developments and provides multilaterally consistent assessments of external positions, including current accounts, real exchange rates, external balance sheets, capital flows, and international reserves, of the...

This paper studies large reductions in current account deficits and exchange rate depreciations in low- and middle-income countries. It examines which factors help predict the occurrence of a reversal or a currency crisis, and how these events affect macroeconomic performance. Both domestic...