The study examined the effect of the transactions of the Global North and the Global South in the international monetary system. This was to examine the ability of the central banks of the Global South to maintain foreign reserves that could put them in a position to compete on equal grounds in the global political economy. The research also assessed how these transactions work to the detriment of the peripheral countries in the global political economy. The literature indicates that most periphery countries are vulnerable to crisis financially and debt default by most of the countries because of the excessive foreign debt obligation which is high in core country currencies. It further revealed that if Global South needs assistance in the form of foreign capital, this will be pegged to the rich country’s currencies (Bordo & Flandreau, 2001). It concludes that the international monetary system favored the Global North because they have huge reserves that do not affect the value of their currencies.