Northwest of Suez: The 1956 Crisis and the IMF

December 1, 2000

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James M. Boughton Northwest of Suez: The 1956 Crisis and the IMF, (USA: International Monetary Fund, 2000) accessed December 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Egypt’s nationalization of the Suez Canal in 1956 and the failed attempt by France, Israel, and Britain to retake it by force constituted a serious political crisis with significant economic consequences. For the United Kingdom, it engendered a financial crisis as well. That all four of the combatants sought and obtained financial assistance from the IMF was highly unusual for the time and had a profound effect on the development of the Fund. This case study illustrates the complexities in isolating the current account as the basis for determining a balance of payments “need” and shows that the speculative attack on sterling—and the Fund’s response to it—were remarkably similar to financial crises in the 1990s.

Subject: Balance of payments, Banking, Credit, Currencies, Current account, Exchange rates, Financial crises, Foreign exchange, Money

Keywords: Britain's role, Credit, Currencies, Current account, Director of research, Exchange rate, Exchange rates, Financial Crises, Financial crisis, Fledgling history, Fund assistance, Fund resource, Funding request, IMF, Middle East, Suez, Suez crisis, Trade diversion, U.K. authorities, U.K. economy, WP

Publication Details

Pages:

29
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/192
Stock No:

WPIEA1922000
ISBN:

9781451859751
ISSN:

1018-5941

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