Which institution is known for addressing issues of currency devaluations and balance-of-payment problems?

The International Monetary Fund (IMF) is renowned for its role in addressing issues related to currency devaluations and balance-of-payments problems. The primary purpose of the IMF is to promote international monetary cooperation and stabilize exchange rates, which are crucial for member countries that may experience financial distress.

When a country faces a balance-of-payments crisis, it may struggle to meet its international financial obligations, often leading to a devaluation of its currency. The IMF provides financial assistance and policy advice to these countries, helping them implement the necessary economic reforms to restore stability.

Through lending programs, the IMF aims to stabilize economies by providing temporary financial support and guiding countries toward sustainable economic policies. This aids in rebuilding trust with investors, restoring confidence in the currency, and ultimately working towards resolving any balance-of-payments issues while ensuring that the international monetary system remains stable.

In contrast, other institutions have different primary focuses. The World Bank, for instance, emphasizes long-term economic development and poverty reduction rather than directly addressing currency issues. The European Central Bank focuses on monetary policy and stability within the Eurozone, while the Asian Development Bank prioritizes development projects and infrastructure in Asia. Hence, the IMF is specifically tailored to address the challenges posed by currency devalu