Getting a member country's economy back on track
When a country imports more than it exports, it has a "trade deficit."
Trade deficits can cause foreign exchange shortages. Without foreign exchange, businesses and governments can't pay the bills they owe other countries. That means balance of payment problem's hurt both the country with the trade deficit and the other countries it buys from.
One important thing the
International Monetary Fund does is to help member countries cope with foreign
exchange shortages caused by balance of payments problems.
|See how the IMF can help a member country improve its economy to recover from a severe trade deficit|