Economic and Financial Committee
Cite as https://mymun.com/ppdb/6487
Country: Kuwait Committee: Economic and Financial Committee Delegates: Daoui Abouchere and German Andres Guberman Delegation: University of Toronto
Topic A: Competitive Currency Devaluation
As a member of the International Monetary Fund, Kuwait is bound by Article VIII Section 3 of the articles of agreement of the IMF, which states that no member shall engage in discriminatory currency arrangements, in particular those cited under Article IV, Section 1 (iii), namely “manipulating exchange rates or the international monetary system in order to prevent effective balance of payments adjustment or to gain an unfair competitive advantage over other members”. Nonetheless, Kuwait is mindful of the flexibility given by the IMF in Article VIII Section 3, which exempts countries from punishment within the organization provided the currency measures are approved. This flexibility is t...