Asian countries may be blocked from setting up an independent regional currency swap mechanism. This was intended to allow countries facing financial crisis to draw US dollars from one another’s foreign exchange reserves without involving the IMF. But the US government is now insisting that the IMF be allowed to set and supervise the conditions for the operation of this facility. A Third World Network statement says the move “would reduce the proposed facility to an appendage of the IMF” and called on Asian governments to ensure its independence.
EarthRights International examines how the Jam v. IFC case has helped to shift the landscape of accountability for international financial institutions by successfully challenging their claim to “absolute” immunity in US courts, potentially opening IFC up to further legal challenges in future.
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