Critics have claimed that rescue packages were accompanied by inappropriate conditions on borrowers, that they did not provide an incentive for debtor nations to help themselves but led to moral hazard, that they did not involve the creditor banks directly and were not 'market-based' solutions.
Many remedies have been suggested, including restructuring the International Monetary Fund (IMF) and the World Bank, and while some may lessen the impact of a currency crisis, none can reduce most of the consequences of such an event. That is the objective of this article, especially in light of a fresh round of large currency devaluations in countries such as Ukraine and Nigeria that have aggravated the impact of the global financial crisis on these countries' banking sectors.
