Policy Papers
2011
September 23, 2011
Criteria for Broadening the SDR Currency Basket
Description: The paper explores the pros and cons of maintaining the current “freely usable currency” criterion, and clarifies indicators for assessing it. The freely usable concept and its two key elements—currencies should be "widely used" and "widely traded"—are set out in the Articles and serve important operational purposes. A formal requirement for a currency to be freely usable was adopted for SDR valuation only in 2000, although considerations relating to this concept had been taken into account earlier. Indicators for assessing freely usable currencies were first discussed in 1977, and are updated to reflect subsequent developments in financial markets and data availability. The paper suggests as indicators for "wide use" the currency composition of foreign exchange reserves, international debt securities, and international bank liabilities; and for "wide trading" it proposes foreign exchange spot market turnover.
September 21, 2011
Managing Global Growth Risks and Commodity Price Shocks - Vulnerabilities and Policy Challenges for Low-Income Countries
Description:
As part of its work to help low-income countries (LICs) manage volatility, the IMF has recently developed an analytical framework to assess vulnerabilities and emerging risks that arise from changes in the external environment (see IMF, 2011a). This report draws on the results of the first Vulnerability Exercise for LICs (VE-LIC) conducted by IMF staff using this new framework.
The report focuses on the risks of a downturn in global growth and of further global commodity price shocks, and discusses related policy challenges. The report is organized as follows: Chapter I reviews recent macroeconomic developments, including the spike in global commodity prices earlier this year. Chapter II assesses current risks and vulnerabilities, including how a sharp downturn in global growth and further commodity price shocks would affect LICs. Chapter III discusses policy challenges in the face of these risks and vulnerabilities.
September 16, 2011
Safeguards Assessments - 2011 Update
Description: Under the Fund’s safeguards policy introduced in 2000, assessments of central banks are carried out for countries seeking financing from the IMF. They are part of the Fund’s approach to prudent lending and complement the Fund’s other safeguards such as program design, conditionality, and access limits, to name a few. The assessments aim to provide reasonable assurance that governance and controls can protect Fund resources from misuse and guard against misreporting of monetary data used for program monitoring purposes.
September 16, 2011
Provisional Agenda for the Twenty-Fourth Meeting of the International Monetary and Financial Committee (IMFC)
Description:
Provisional Agenda
1. Adoption of Agenda—Opening Remarks by the Chair
2. The Managing Director’s Consolidated Multilateral Surveillance Report
- Presentation by the IMF Economic and Financial Counsellors The Managing Director’s Action Plan
- Presentation by the Managing Director
3. Approval of Press Communiqué
September 13, 2011
Update on the Financing of the Fund's Concessional Assistance and Debt Relief to Low-Income Member Countries
Description:
Lower-than-expected demand over the recent past has raised the lending capacity of the PRGT for the years 2012–14. Staff’s latest projections suggest PRGT demand in 2011 could be about SDR 1.4 billion, up from SDR 1.2 billion in 2010. Assuming the 2009 LIC financing package is completed, these projections would be consistent with lending capacity of about SDR 2.1 billion per year from 2012–14, or SDR 1.5 billion per year through 2015.
Most of the targeted loan resources under the 2009 package have now been secured, but additional pledges of about SDR 1 billion in loans are still needed. Fourteen members have pledged SDR 9.8 billion in new loan resources for the PRGT, compared to the target of SDR 10.8 billion. New borrowing agreements totaling SDR 9.5 billion have been signed with thirteen lenders. Eight of these agreements provide loan resources in SDRs, and seven creditors also participate in the voluntary encashment regime.
September 13, 2011
Progress Report on the Activities of the Independent Evaluation Office
Description: Since its last report to the IMFC in April 2011, the Independent Evaluation Office (IEO) completed the evaluation of Research at the IMF: Relevance and Utilization. The IEO continues its work on the evaluations of “International Reserves: IMF Advice and Country Perspectives” and of “The Role of the IMF as Trusted Advisor,” announced last spring. Draft issues papers on these two evaluations, as well as on a new study, “Learning from Experience at the IMF: An IEO Assessment of Self-Evaluation Systems,” were circulated to the Executive Board and posted on the IEO website for public comment.
August 31, 2011
2011 Triennial Surveillance Review - Report of the External Advisory Group
Description:
This report was prepared by the External Advisory Group (EAG) for the 2011 Triennial Surveillance Review (TSR). The Group comprised the following members: Shankar Acharya, Marc Antoine Autheman, Kemal Dervis, Martin Hellwig, Takatoshi Ito, David Li, Pedro Malan, Stephen Pickford, Chukwuma Charles Soludo, Umayya Toukan, and Edwin Truman.
The EAG was set up to provide an independent check on staff’s analysis and recommendations which are set out in the 2011 Triennial Surveillance Review—Overview Paper. The EAG contributed in written form and met twice during the course of the Triennial Surveillance Review (TSR)—on April 18 and July 29, 2011—to discuss the direction, emerging findings, and recommendations of the review.
Notes: The views expressed in this report are those of the External Advisory Group and do not necessarily reflect those of the IMF or IMF policy.
August 29, 2011
2011 Triennial Surveillance Review - Overview Paper
Description: This paper assesses progress in strengthening Fund surveillance and identifies needed improvements. It differs from past reviews insofar as it: (A) encompasses not only bilateral but also multilateral surveillance; and (B) steps-up external inputs in the form of studies by outside observers, commentaries, and assessment of recommendations by an external advisory group.
August 26, 2011
2011 Triennial Surveillance Review - Health Check and Statistical Information
Description: This paper (a) provides a snapshot of the overall value added of Fund‘s surveillance perceived by stakeholders; (b) details where the Fund stands in terms of four operational priorities set out in the 2008 TSR; (c) examines key issues identified in the recent IEO paper on the IMF performance in the run up to the global crisis; and (d) discusses stakeholders' perception on the communication aspects of surveillance.
August 26, 2011
2011 Triennial Surveillance Review - Review of the 2007 Surveillance Decision and the Broader Legal Framework for Surveillance
Description: This paper reviews the 2007 Surveillance Decision and the broader legal framework for surveillance. While the 2007 Surveillance Decision on Bilateral Surveillance over Members’ Policies (thereafter, the 2007 Decision) requires the Fund to review the decision itself, this paper takes a broader view. It recognizes that the 2007 Decision cannot be assessed in isolation from the legal framework it derives from, i.e., the Articles of Agreement, and that a debate on the adequacy of this broader framework is also necessary. The paper therefore discusses the strengths and limitations of the current system as set out in both the Articles of Agreement (primarily, Article IV) and the 2007 Decision and explores options going forward.