April 13, 2008	Sunday	Rabi-us-Sani 6, 1429

WASHINGTON, April 12 : The International Monetary Fund should sharpen its focus on currency exchange rate surveillance, challenges posed by sovereign wealth funds and supporting global financial market stability, US Treasury Secretary Henry Paulson said on Saturday.

Paulson said the IMF, in implementing a new surveillance regime, must use clear analytics and make strong judgements on exchange rate policies, particularly where currencies are not set by market forces in deep, liquid markets. The IMF’s implementation of the new surveillance decision is still a work in progress, he said in prepared remarks before the IMF’s steering committee in Washington.

Strengthened implementation of this core mandate is integral to IMF legitimacy; insufficient progress would put success of the broader modernization effort at risk. Paulson also repeated his long-standing call for continued progress in reforming the IMF’s governing structure, including a smaller, more streamlined board, with gradual reductions to 20 seats from 24 currently by 2012.

The US Treasury secretary also said he supported the recommendations of the multi-nation Financial Stability Forum, unveiled on Friday, to improve risk management, accounting, valuation of structured products, credit rating agencies and other responses to stress in the financial system.—Reuters