Interim Review of The Adequacy of The Fund’s Precautionary Balances

December 16, 2021

Preview Citation

Format: Chicago

Interim Review of The Adequacy of The Fund’s Precautionary Balances, (USA: International Monetary Fund, 2021) accessed November 15, 2024

Summary

Precautionary balances are a key element of the Fund’s multilayered framework to mitigate financial risks. Overall financial risks remain elevated but have not increased significantly since the last review. Staff proposes to leave the medium-term target of SDR 25 billion, and the minimum floor of SDR 15 billion, unchanged at this time. With the projected increase in lending income, the pace of reserve accumulation is expected to remain adequate relative to the medium-term indicative target. The paper also reviews policy factors discussed in recent Board meetings that affect the level and accumulation of reserves.

Subject: COVID-19, Credit, Credit risk, Expenditure, Financial regulation and supervision, Health, Income, Monetary policy, Money, National accounts, Pension spending, Political economy

Keywords: COVID-19, Credit, Credit risk, D. financial risks, Global, Income, Income volatility, Pension spending, Risk management framework, Totaling SDR, Transparency policy

Publication Details

Pages:

50
Volume:

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DOI:

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Issue:

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Series:

Policy Paper No. 2021/073
Stock No:

PPEA2021073
ISBN:

9781616357528
ISSN:

2663-3493

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