The IMF says Australia has not made sufficient progress in implementing its foreign exchange audit policy, and it says the country should not be considered to have met its audit targets.
Key points:The IMF said Australia’s audit targets are “unachievable” due to its low gold reservesThe report said Australia had not made “sufficient progress” in implementing the audit regimeThe report was released in response to a parliamentary inquiry into foreign exchange and the financial system, and came amid renewed criticism of Australia’s foreign exchange policy by the Australian Reserve Bank.
In response to the report, the Reserve Bank said it is “unable to conclude that Australia’s internal controls have sufficiently protected the banking system and the stability of the economy”.
“We would recommend that the IMF’s review of Australia be extended and should focus on Australia’s overall domestic controls and implementation of the foreign currency audit regime,” the Reserve said in a statement.
The report is critical of Australia for not being more transparent about its audit regime, and criticises the country for not including its gold reserves in its report.
The IMF’s report comes as Australia’s biggest gold producer, Perth-based Glencore, announced plans to build a $1.6 billion gold mine in the country.
The project has been met with opposition from mining magnate Gina Rinehart, who has been pushing for the country to develop its gold and other resources.
The Reserve Bank says its report is “fair and balanced” but that it is important that the report’s findings be taken into account by the wider Australian economy.
Topics:economics-and-finance,gold,foreign-exchange,foreignpolicy,government-and australiaFirst posted January 20, 2020 17:54:51Contact John EwingMore stories from Western Australia