## Appendix 3 — Treatment of Centralized Currency Unions in Macroeconomic Statistics (BPM6)

## Source details

**Canonical URL:** [Appendix 3 — Treatment of Centralized Currency Unions in Macroeconomic Statistics (BPM6)](https://www.imf.org/-/media/files/data/statistics/bpm6/approved-guidance-notes/b3-treatment-of-centralized-currency-unions-in-macroeconomic-statistics.pdf)

## Other formats

- [Markdown version](/-/media/files/data/statistics/bpm6/approved-guidance-notes/b3-treatment-of-centralized-currency-unions-in-macroeconomic-statistics.pdf.md)
- [Structured JSON version](/-/media/files/data/statistics/bpm6/approved-guidance-notes/b3-treatment-of-centralized-currency-unions-in-macroeconomic-statistics.pdf.json)

---

### Major themes and scope
- Appendix 3 of the Balance of Payments and International Investment Position Manual, sixth edition (BPM6) addresses the treatment of regional arrangements such as currency unions (CUs) in external sector statistics (ESS), distinguishing between centralized and decentralized CUs.
- The Guidance Note (GN) focuses on three areas of concern raised for centralized CUs: imputed reserve assets (RA) under a solidarity principle; residency attribution of national agencies (NAs) of the CU central banks (CUCBs); and the concept of CUCB own account transactions.

### Definitions and frameworks
- Centralized CU: CUCB owned by the governments of member economies, common currency issued by CUCB, central bank operations in each economy carried out by branches or NAs of the CUCB (observed in CEMAC, WAEMU, ECCU).
- Decentralized CU: CUCB plus CU national central banks (CUNCBs) of member economies, CUCB owned by CUNCBs (observed in the euro area).
- NAs: national directorates, branch offices, and notional units acting as national monetary authorities in a centralized CU.
- Basic formula for imputed RA: Net claims on CUCB = Reserve Money (RM) - Net Domestic Assets (NDA) for each economy.
- Identity used for ECCU imputed RA: NFA(X) = RM(X) - NDA(X) (where NFA(X) is net foreign assets of member country X, RM(X) is reserve money issued by country X, and NDA(X) is net domestic assets of country X).

### Key findings and clarifications
- Residency of NAs
  - BPM6 treats NAs in centralized CUs as institutional units separate from the CUCB headquarters; NAs are deemed residents of the economies where they are located.
  - When NAs are not established, a notional resident unit is imputed for statistical purposes to record central bank transactions and positions with residents of the economy (BPM6, paragraph A3.32).
  - Residence attribution is based on the substantive presence and operations in the territory (BPM6, paragraph 4.26), not on which unit ultimately bears the economic risk.
- Domestic vs cross-border treatment of transactions
  - Assets and liabilities of resident units vis-à-vis the monetary authority (when central bank functions are deemed carried out by resident NAs) should be treated as domestic.
  - Transactions among resident units settled through the CUCB are resident–resident transactions and should not be included in the balance of payments of the member economy (BPM6, paragraph A3.33).
  - Where the CUCB is acting on its own account, transactions of CU residents with the CUCB should be recorded in the national balance of payments according to the nature of the transaction (BPM6, paragraph A3.35). Example: debt securities issued by the CUCB and subscribed by residents are recorded as portfolio investment (assets).
- Imputed reserve assets (RA)
  - The net claim of the NA on the CUCB (difference between assets and liabilities) represents its share of the CUCB’s RA; negative net claims are treated as loan liabilities (BPM6, paragraph A3.37).
  - Imputed RA are necessary for assessing the external position of individual CU members and for balance of payments, IIP, IRFCL, quota shares, and SDR allocation calculations.
  - In centralized CUs where accounting records are insufficient to apportion reserves across Member States, imputed RA should be derived using net claims on the CUCB following BPM6 principles (as in the ECCU).
  - In cases where a solidarity principle gives members access to the full pool of union-level reserves irrespective of contributions (e.g., WAEMU, CEMAC to varying degrees), pooled RA may alternatively be recorded under other investment in the national balance of payments and IIP of CU member states; however, such alternative treatment is not recommended.
- Intra-union balances and liaison accounts
  - In centralized CUs, intra-union transactions channeled through the CUCB (liaison accounts) impact members’ net claims on the CUCB and thus their imputed shares of RA (BPM6, paragraph A3.37).
  - GN considers no additional guidance on this issue necessary beyond existing BPM6 principles.

### Issues identified by compilers and users
- Apportioning pooled RA in CUs with a solidarity principle:
  - WAEMU: solidarity principle challenges imputing RA; BCEAO stopped publishing imputed reserves data for each member in 2017, though monetary and financial statistics (MFS) still identify NA claims on nonresidents and RA data are disseminated in IIP and balance of payments separately for each member.
  - CEMAC: solidarity principle is not absolute; BEAC regularly compiles imputed RA and is institutionally obliged to calculate foreign exchange reserves of each member (Article 26 and Article 28 cited).
  - ECCU: member economies own/hold a national share of the common RA pool; imputed reserves computed per BPM6 identity.
- Ambiguity over whether NAs are separate residents:
  - If NAs are residents, monetary authority assets/liabilities vis-à-vis residents are domestic; if not, they would be attributed to the CUCB and treated as cross-border, increasing a country’s external debt.
  - Some users argue that NAs lack independent balance sheets and that ultimate risk rests with the CUCB; GN clarifies that residence attribution is not determined by ultimate risk-bearing.
- Need for clearer guidance on CUCB “acting on its own account”
  - Additional criteria are required to attribute transactions/positions to CUCB headquarters versus NAs for consistent national BOP and IIP statistics.
  - The GN recommends developing the concept of CUCB “own account transactions” in the next edition of the Balance of Payments Manual.

### Recommendations of the Guidance Note
- Residency of NAs
  - NAs should continue to be treated as residents of the economies of their location.
- CUCB own account transactions
  - CUCB own account transactions with CU residents should be restricted to those that do not relate to the regular operations of the monetary authorities of member countries (i.e., those which cannot be attributed to NAs).
- Imputed RA
  - Maintain BPM6 guidance on imputed RA: use net claims on CUCB for deriving imputed RA where no direct information/accounting records exist to apportion reserves across Member States (e.g., ECCU).
  - Although, in view of the solidarity principle, pooled RA could alternatively be recorded under other investment in the national balance of payments and IIP of CU member states, such alternative treatment is not recommended.
- GN consensus
  - Adopt Option 1.1, Option 2.1, and Option 3.1 to ensure consistency with BPM6 principles—residency of institutional units, uniform treatment of institutions fulfilling monetary authority functions, and data comparability across countries for policy/surveillance purposes.
  - Option 1.2 identified as an alternative for cases like WAEMU where BCEAO does not calculate imputed reserves because of the solidarity principle, but this alternative is not recommended.
  - Balance of Payments Task Team (BPTT) overwhelmingly supported Options 1.1, 2.1, and 3.1.
  - Committee outcomes: full support for Option 2.1 and Option 3.1; wide majority agreed on Option 1.1.

### CUCB “own account” transactions — scope and clarification
- Definition and interpretation
  - CUCB “own account” transactions are those that cannot be attributed to national agencies (NAs).
  - Most CUCB balance sheet entries can be imputed to NAs; own account transactions should be limited to those beyond regular operations of monetary authorities (example: CUCB borrowing from another central bank/government or IO).
  - Transactions and positions of the CUCB with nonresidents of the CU, where the CUCB is acting on its own account (e.g., interest on the part of reserve assets not allocated to any member economy), should be included in the balance of payments of the CU and not recorded in any national balance of payments of member economies (BPM6, paragraph A3.36).
- GN options and preferred choice
  - Option 3.1 (preferred): No change to BPM6 concept; own account transactions/positions remain those that do not relate to regular operations of monetary authorities of an economy. Consistent with Option 2.1 treating NAs as residents.
  - Option 3.2 (rejected): Treat all CUCB transactions/positions as “own account” and record them in member economies’ balance of payments/IIP.

### Imputed reserve assets (RA): practices and proposed options
- Current practices
  - ECCU: BPM6 guidance on attribution of RA based on net claims on the CUCB is applied; data are available and estimates of transactions and positions for each member country are included in national balance of payments and IIP statistics.
  - CEMAC: RA attributed to member states are calculated as the sum of components of foreign exchange reserves directly recorded in accounts of each member state and items subject to a breakdown between member states and the head office.
  - WAEMU: Strong adherence to the solidarity principle challenges imputing RA; BCEAO does not compile imputed RA for WAEMU members, though central bank surveys identify NA claims on nonresidents and RA data are disseminated separately for each member.
- GN proposed options where no direct apportionment information exists
  - Option 1.1 (preferred option): Maintain BPM6 guidance—derive imputed RA using net claims on the CUCB.
  - Option 1.2 (not recommended option): Record RA only in the balance sheet of the CUCB (not in national balance of payments and IIP of CU Member States); net claims on the CUCB could be recorded under other investment in national statistics. Clarify this recording in ESS metadata of individual member countries.

### Interpretation of the role of NAs and their transactions with residents — options
- Option 2.1 (preferred option)
  - Treat NAs (including notional resident units) as residents of the economies of their location.
  - Transactions between the NA and resident units of the same member economy settled through accounts at the CUCB are recorded/imputed in the NA balance sheet for statistical purposes and treated as resident–resident transactions.
  - Well-established central bank surveys support identification of NA balance sheets in all three centralized CUs.
- Option 2.2 (rejected option)
  - Do not recognize NAs as residents for statistical purposes, implying transactions/positions of residents with the CUCB would be recorded as resident–nonresident.
  - Consequences: significant increase in gross external assets/liabilities (including external debt) of member economies; monetary operations recorded as cross-border; intra-resident transactions through CUCB accounts would cause reclassification of sector positions; concerns about evenhanded treatment of member economies for surveillance and statistical perspectives.

### Practical examples and annexes (illustrative scenarios and balance-sheet effects)
- Annex III contains numerical examples illustrating recording following BPM6 framework:
  - Example 1: Opening statistical balance sheet of CUCB and the NAs
  - Example 2: Following example 1, extra-union export of CU member economy A
  - Example 3: Following example 1, intra-union export of CU member economy A settled in domestic currency
  - Example 4: Following example 1, extra-union imports of CU member economy A
  - Example 5: Following example 1, CUCB lends to a bank in CU member economy A in the context of regular monetary authority function (intra-union)
  - Example 6: Bank in Economy A lends 100 to a bank in Economy B
  - Example 7: Government of Economy A borrows 100 from IMF
  - Example 8: HQ of CUCB borrows 300 from government of Economy Y (own-account transaction with nonresidents)
  - Example 9: CUCB lends 300 to government of Economy B (channeled through NA of Economy B)
  - Example 10: Extra-union imports of CU member economy B following the CUCB intra-union lending to economy B
- Example 1 — Opening balances (exact figures)
  - CUCB Balance Sheet:
    - Assets: RA 500; Claims on CU residents 1500; Total 2000
    - Liabilities: Banknotes 1600; Deposits of CU banks 400; Total 2000
  - NA—Economy A Balance Sheet:
    - Assets: Net claim on CUCB-RA 300; Domestic assets (residents of A) 950; Bank deposits (residents of A) 250; Total 1250
    - Liabilities: Banknotes 1000; Total 1250
  - NA—Economy B Balance Sheet:
    - Assets: Net claim on CUCB-RA 200; Domestic assets (residents of B) 550; Bank deposits (residents of B) 150; Total 750
    - Liabilities: Banknotes 600; Total 750
- Selected example outcomes (exact figures preserved)
  - Example 2 — Economy A exports 100 to Economy Y (paid in foreign exchange):
    - CUCB RA increases to 600; Deposits of CU banks increase to 500; CUCB Total 2100
    - NA—Economy A net claim on CUCB-RA increases to 400; Bank deposits (residents of A) increase to 350; NA A Total 1350
  - Example 3 — Economy A exports 100 to Economy B (settled in domestic currency):
    - CUCB balances remain at Total 2000
    - NA—Economy A net claim on CUCB-RA increases to 400; NA A Total 1350
    - NA—Economy B net claim on CUCB-RA decreases to 100; NA B Total 650
  - Example 4 — Economy A imports 400 from Economy Y (paid in foreign exchange):
    - CUCB RA decreases to 100; Claims on CU residents increase to 1650; Deposits of CU banks 150; CUCB Total 1750
    - NA—Economy A net claim on CUCB-RA becomes -100; Domestic assets (residents of A) 1100; Bank deposits 0; NA A Total 1000
  - Example 5 — CUCB lends 100 to a bank in Economy A:
    - CUCB Claims on CU residents increase to 1600; Deposits of CU banks 500; CUCB Total 2100
    - NA—Economy A net claim on CUCB-RA remains 300; Domestic assets (residents of A) 1050; Bank deposits 350; NA A Total 1350
  - Example 8 — HQ of CUCB borrows 300 from government of Economy Y (own-account transaction with nonresidents):
    - CUCB RA increases to 800; Loans to nonresidents 300; CUCB Total 2300
    - NAs remain as in Example 1 (NA A Total 1250; NA B Total 750)
  - Example 10 — Government of Economy B uses 300 for imports from Economy Y (paid in foreign exchange):
    - CUCB RA becomes 500; Claims on CU residents 1800; Deposits of CU banks 400; Loans to nonresidents 300; CUCB Total 2300
    - NA—Economy B net claim on CUCB-RA becomes -100; Bank deposits (residents of B) 150; NA B Total 750
- Annex II provides more detailed information on imputed RA in CEMAC, ECCU, and WAEMU.

### Illustrative data points cited (exact values preserved)
- CEMAC — Reserve Assets (IIP) vs Central Bank-claims on Nonresidents for Cameroon:
  - Reserve Assets in IIP: 2012 3,431; 2013 3,508; 2014 3,204; 2015 3,568; 2016 2,260; 2017 3,235; 2018 3502; 2019 3765.
  - Central Bank-claims on Nonresidents: 2012 3,431; 2013 3,508; 2014 3,204; 2015 3,568; 2016 2,260; 2017 3,235; 2018 3502.
- ECCU — Sample Reserve Assets (IIP) vs Central Bank-Claims on Nonresidents (millions of US Dollars):
  - Anguilla Reserve Assets in IIP: 2013 41.0; 2014 47.3; 2015 48.1; 2016 55.6; 2017 76.4; 2018 65.5. Central Bank-Claims on nonresidents: same values.
  - Antigua and Barbuda Reserve Assets in IIP: 2013 202.6; 2014 297.1; 2015 355.7; 2016 330.1; 2017 313.6; 2018 328.7. Central Bank-Claims on nonresidents: 2013 202.7; 2014 297.1; 2015 355.8; 2016 330.2; 2017 313.7; 2018 328.7.
  - Dominica Reserve Assets in IIP: 2013 87.1; 2014 101.5; 2015 126.2; 2016 221.9; 2017 212.3; 2018 191.3. Central Bank-Claims on nonresidents: 2013 87.1; 2014 101.5; 2015 126.3; 2016 221.9; 2017 212.3; 2018 191.3.
  - Grenada Reserve Assets in IIP: 2013 150.6; 2014 170.0; 2015 198.0; 2016 207.7; 2017 199.1; 2018 233.8. Central Bank-Claims on nonresidents: 2013 150.6; 2014 170.0; 2015 198.0; 2016 207.8; 2017 199.2; 2018 233.8.
  - Montserrat Reserve Assets in IIP: 2013 40.5; 2014 45.1; 2015 51.5; 2016 49.4; 2017 47.6; 2018 50.1. Central Bank-Claims on nonresidents: same values.
  - St. Kitts and Nevis Reserve Assets in IIP: 2013 302.0; 2014 327.3; 2015 288.4; 2016 320.5; 2017 365.1; 2018 363.2. Central Bank-Claims on nonresidents: 2013 297.5; 2014 323.3; 2015 284.6; 2016 316.8; 2017 361.8; 2018 361.0.
  - St. Lucia Reserve Assets in IIP: 2013 192.2; 2014 257.7; 2015 317.5; 2016 305.5; 2017 321.8; 2018 285.8. Central Bank-Claims on nonresidents: 2013 192.4; 2014 257.8; 2015 317.7; 2016 305.7; 2017 321.9; 2018 285.8.
  - St. Vincent and Grenadines Reserve Assets in IIP: 2013 135.1; 2014 157.4; 2015 172.7; 2016 192.3; 2017 182.1; 2018 169.6. Central Bank-Claims on nonresidents: same values.
- WAEMU — Comparison Reserve Assets (IIP) vs. Central Bank-claims on Nonresidents (millions of US Dollars):
  - Burkina Faso — Reserve Assets in IIP: 2012 1,025; 2013 628; 2014 297; 2015 260; 2016 51; 2017 1,649; 2018 1619; 2019 1795.
  - Burkina Faso — Central Bank-claims on Nonresidents: 2012 1,017; 2013 616; 2014 643; 2015 926; 2016 996; 2017 1,649; 2018 1620; 2019 1795.
  - Cote d'Ivoire — Reserve Assets in IIP: 2012 3,928; 2013 4,225; 2014 4,487; 2015 4,702; 2016 4,147; 2017 6,257; 2018 6341.
  - Cote d'Ivoire — Central Bank-claims on Nonresidents: 2012 4,457; 2013 4,806; 2014 5,165; 2015 5,516; 2016 4,935; 2017 6,257; 2018 6344; 2019 7419.
  - Senegal — Reserve Assets in IIP: 2012 2,082; 2013 2,253; 2014 2,039; 2015 2,012; 2016 1,554; 2017 1,914; 2018 2405.
  - Senegal — Central Bank-claims on Nonresidents: 2012 2,101; 2013 2,099; 2014 2,042; 2015 1,988; 2016 1,554; 2017 1,914; 2018 2466.

*Prepared by the IMF Statistics Department; recommendations approved by the Committee via written consultation.*

### Appendix 3 of the sixth edition of the Balance of Payments and International Investment Position Manual

### Appendix 3 — Treatment of Centralized Currency Unions in Macroeconomic Statistics (BPM6)

### Major themes and scope
- Appendix 3 of the Balance of Payments and International Investment Position Manual, sixth edition (BPM6) addresses the treatment of regional arrangements such as currency unions (CUs) in external sector statistics (ESS), distinguishing between centralized and decentralized CUs.
- The guidance note (GN) focuses on three areas of concern raised for centralized CUs: imputed reserve assets (RA) under a solidarity principle; residency attribution of national agencies (NAs) of the CU central banks (CUCBs); and the concept of CUCB own account transactions.

### Definitions and frameworks
- Centralized CU: CUCB owned by the governments of member economies, common currency issued by CUCB, central bank operations in each economy carried out by branches or NAs of the CUCB (observed in CEMAC, WAEMU, ECCU).
- Decentralized CU: CUCB plus CU national central banks (CUNCBs) of member economies, CUCB owned by CUNCBs (observed in the euro area).
- NAs: national directorates, branch offices, and notional units acting as national monetary authorities in a centralized CU.
- Basic formula for imputed RA: Net claims on CUCB = Reserve Money (RM) - Net Domestic Assets (NDA) for each economy.
- Identity used for ECCU imputed RA: NFA(X) = RM(X) - NDA(X) (where NFA(X) is net foreign assets of member country X, RM(X) is reserve money issued by country X, and NDA(X) is net domestic assets of country X).

### Key findings and clarifications
- Residency of NAs
  - BPM6 treats NAs in centralized CUs as institutional units separate from the CUCB headquarters; NAs are deemed residents of the economies where they are located.
  - When NAs are not established, a notional resident unit is imputed for statistical purposes to record central bank transactions and positions with residents of the economy (BPM6, paragraph A3.32).
  - Residence attribution is based on the substantive presence and operations in the territory (BPM6, paragraph 4.26), not on which unit ultimately bears the economic risk.

- Domestic vs cross-border treatment of transactions
  - Assets and liabilities of resident units vis-à-vis the monetary authority (when central bank functions are deemed carried out by resident NAs) should be treated as domestic.
  - Transactions among resident units settled through the CUCB are resident–resident transactions and should not be included in the balance of payments of the member economy (BPM6, paragraph A3.33).
  - Where the CUCB is acting on its own account, transactions of CU residents with the CUCB should be recorded in the national balance of payments according to the nature of the transaction (BPM6, paragraph A3.35). Example: debt securities issued by the CUCB and subscribed by residents are recorded as portfolio investment (assets).

- Imputed reserve assets (RA)
  - The net claim of the NA on the CUCB (difference between assets and liabilities) represents its share of the CUCB’s RA; negative net claims are treated as loan liabilities (BPM6, paragraph A3.37).
  - Imputed RA are necessary for assessing the external position of individual CU members and for balance of payments, IIP, IRFCL, quota shares, and SDR allocation calculations.
  - In centralized CUs where accounting records are insufficient to apportion reserves across Member States, imputed RA should be derived using net claims on the CUCB following BPM6 principles (as in the ECCU).
  - In cases where a solidarity principle gives members access to the full pool of union-level reserves irrespective of contributions (e.g., WAEMU, CEMAC to varying degrees), pooled RA may alternatively be recorded under other investment in the national balance of payments and IIP of CU member states; however, such alternative treatment is not recommended.

- Intra-union balances and liaison accounts
  - In centralized CUs, intra-union transactions channeled through the CUCB (liaison accounts) impact members’ net claims on the CUCB and thus their imputed shares of RA (BPM6, paragraph A3.37).
  - No additional guidance on this issue is considered necessary by the GN.

### Issues identified by compilers and users
- Apportioning pooled RA in CUs with a solidarity principle:
  - WAEMU: solidarity principle challenges imputing RA; BCEAO stopped publishing imputed reserves data for each member in 2017, though monetary and financial statistics (MFS) still identify NA claims on nonresidents and RA data are disseminated in IIP and balance of payments separately for each member.
  - CEMAC: solidarity principle is not absolute; BEAC regularly compiles imputed RA and is institutionally obliged to calculate foreign exchange reserves of each member (Article 26 and Article 28 cited).
  - ECCU: member economies own/hold a national share of the common RA pool; imputed reserves computed per BPM6 identity.

- Ambiguity over whether NAs are separate residents:
  - If NAs are residents, monetary authority assets/liabilities vis-à-vis residents are domestic; if not, they would be attributed to the CUCB and treated as cross-border, increasing a country’s external debt.
  - Some users argue that NAs lack independent balance sheets and that ultimate risk rests with the CUCB; GN clarifies that residence attribution is not determined by ultimate risk-bearing.

- Need for clearer guidance on CUCB “acting on its own account”
  - Additional criteria are required to attribute transactions/positions to CUCB headquarters versus NAs for consistent national BOP and IIP statistics.
  - The GN recommends developing the concept of CUCB “own account transactions” in the next edition of the Balance of Payments Manual.

### Recommendations of the guidance note
- Residency of NAs
  - NAs should continue to be treated as residents of the economies of their location.

- CUCB own account transactions
  - CUCB own account transactions with CU residents should be restricted to those that do not relate to the regular operations of the monetary authorities of member countries (i.e., those which cannot be attributed to NAs).

- Imputed RA
  - Maintain BPM6 guidance on imputed RA: use net claims on CUCB for deriving imputed RA where no direct information/accounting records exist to apportion reserves across Member States (e.g., ECCU).
  - Although, in view of the solidarity principle, pooled RA could alternatively be recorded under other investment in the national balance of payments and IIP of CU member states, such alternative treatment is not recommended.

### Practical examples and annexes
- Examples illustrating recording following BPM6 framework (Annex III):
  - Example 1: Opening statistical balance sheet of CUCB and the NAs
  - Example 2: Following example 1, extra-union export of CU member economy A
  - Example 3: Following example 1, intra-union export of CU member economy A settled in domestic currency
  - Example 4: Following example 1, extra-union imports of CU member economy A
  - Example 5: Following example 1, CUCB lends to a bank in CU member economy A in the context of regular monetary authority function (intra-union)
  - Example 10: Extra-union imports of CU member economy B following the CUCB intra-union lending to economy B
- Annex II: More detailed information on imputed RA in CEMAC, ECCU, and WAEMU.

*Prepared by the IMF Statistics Department; recommendations approved by the Committee via written consultation.*

### 17. CUCB “own account” transactions should be clarified in the context of the role of NAs and

### b3-treatment-of-centralized-currency-unions-in-macroeconomic-statistics - 17. CUCB “own account” transactions should be clarified in the context of the role of NAs and other national institutional units.

### Scope and central conceptual points
- The Guidance Note (GN) indicates transactions of CU residents with the CUCB, where the CUCB is acting on its own account, should be recorded in the national balance of payments of the member economy according to the nature of the transaction, but the interpretation of “own account” requires clarification.
- CUCB “own account” transactions are defined as those that cannot be attributed to national agencies (NAs). For the most part the balance sheet of the CUCB can be seen as the sum of the balance sheets of the NAs; thus most CUCB transactions are imputed to NAs as resident–resident transactions.
- Own account transactions should be limited to those beyond regular operations of monetary authorities of an economy (example: CUCB borrowing from another central bank/government or IO), which would be recorded in the balance of payments of the CU and not attributed to any member economy.
- Transactions and positions of the CUCB with nonresidents of the CU, where the CUCB is acting on its own account (e.g., interest on the part of reserve assets not allocated to any member economy), should be included in the balance of payments of the CU and not recorded in any national balance of payments of member economies (BPM6, paragraph A3.36).

### Imputed reserve assets (RA): practices and proposal
- Current application:
  - ECCU: BPM6 guidance on attribution of RA based on net claims on the CUCB is applied; data are available and estimates of transactions and positions for each member country are included in national balance of payments and IIP statistics.
  - CEMAC: RA attributed to member states are calculated as the sum of components of foreign exchange reserves directly recorded in accounts of each member state and items subject to a breakdown between member states and the head office.
  - WAEMU: Strong adherence to the solidarity principle challenges imputing RA; BCEAO does not compile imputed RA for WAEMU members, though central bank surveys identify NA claims on nonresidents and RA data are disseminated separately for each member.
- GN proposed options for cases with no direct information to apportion reserves:
  - Option 1.1 (preferred option): Maintain BPM6 guidance—derive imputed RA using net claims on the CUCB.
  - Option 1.2 (not recommended option): Record RA only in the balance sheet of the CUCB (not in national balance of payments and IIP of CU Member States); net claims on the CUCB could be recorded under other investment in national statistics. This recording should be clarified in ESS metadata of individual member countries.

### Interpretation of the role of NAs and their transactions with residents
- Two GN options:
  - Option 2.1 (preferred option): Treat NAs (including notional resident units) as residents of the economies of their location. Transactions between the NA and resident units of the same member economy settled through accounts at the CUCB are recorded/imputed in the NA balance sheet for statistical purposes and treated as resident–resident transactions. Well-established central bank surveys support identification of NA balance sheets in all three centralized CUs.
  - Option 2.2 (rejected option): Do not recognize NAs as residents for statistical purposes, implying transactions/positions of residents with the CUCB would be recorded as resident–nonresident. Consequences: significant increase in gross external assets/liabilities (including external debt) of member economies; monetary operations recorded as cross-border; intra-resident transactions through CUCB accounts would cause reclassification of sector positions; concerns about evenhanded treatment of member economies from surveillance and statistical perspectives.

### CUCB “own account” transactions and positions
- GN proposed options:
  - Option 3.1 (preferred option): No change to BPM6 concept; own account transactions/positions remain those that do not relate to regular operations of monetary authorities of an economy. This is consistent with Option 2.1 treating NAs as residents.
  - Option 3.2 (rejected option): Consistent with Option 2.2, treat all CUCB transactions/positions as “own account” and record them in member economies’ balance of payments/IIP (i.e., all CUCB transactions with residents and nonresidents considered own account).

### Recommendations and consensus outcomes
- GN recommendation: adopt Option 1.1, Option 2.1, and Option 3.1 to ensure consistency with BPM6 principles—residency of institutional units, uniform treatment of institutions fulfilling monetary authority functions, and data comparability across countries for policy/surveillance purposes.
- Option 1.2 identified as an alternative for cases like WAEMU where BCEAO does not calculate imputed reserves because of the solidarity principle, but this alternative is not recommended.
- Balance of Payments Task Team (BPTT) overwhelmingly supported Options 1.1, 2.1, and 3.1. Numerical examples in Annex III were widely regarded as useful for clarifying conceptual issues and recommended for inclusion in the updated appendix on currency unions in BPM7 (with some members suggesting shortening or placing some examples in the updated BPM6 Compilation Guide).
- Outcomes of the written consultation with the Committee:
  - Committee members fully supported Option 2.1 and Option 3.1.
  - A wide majority agreed on Option 1.1 for imputed RA.
  - Most members agreed numerical examples in Annex III are useful and recommended their inclusion in the updated appendix on currency unions in BPM7.
  - Footnotes: Only one member supported Option 1.2 noting allocation of RAs under solidarity could heavily distort allocation of risks and rewards across countries.

### Illustrative data points cited (exact values preserved)
- CEMAC — Reserve Assets (IIP) vs Central Bank-claims on Nonresidents for Cameroon:
  - Reserve Assets in IIP: 2012 3,431; 2013 3,508; 2014 3,204; 2015 3,568; 2016 2,260; 2017 3,235; 2018 3502; 2019 3765.
  - Central Bank-claims on Nonresidents: 2012 3,431; 2013 3,508; 2014 3,204; 2015 3,568; 2016 2,260; 2017 3,235; 2018 3502.
- ECCU — Sample Reserve Assets (IIP) vs Central Bank-Claims on Nonresidents (millions of US Dollars) for selected members and years:
  - Anguilla Reserve Assets in IIP: 2013 41.0; 2014 47.3; 2015 48.1; 2016 55.6; 2017 76.4; 2018 65.5. Central Bank-Claims on nonresidents: same values.
  - Antigua and Barbuda Reserve Assets in IIP: 2013 202.6; 2014 297.1; 2015 355.7; 2016 330.1; 2017 313.6; 2018 328.7. Central Bank-Claims on nonresidents: 2013 202.7; 2014 297.1; 2015 355.8; 2016 330.2; 2017 313.7; 2018 328.7.
  - Dominica Reserve Assets in IIP: 2013 87.1; 2014 101.5; 2015 126.2; 2016 221.9; 2017 212.3; 2018 191.3. Central Bank-Claims on nonresidents: 2013 87.1; 2014 101.5; 2015 126.3; 2016 221.9; 2017 212.3; 2018 191.3.
  - Grenada Reserve Assets in IIP: 2013 150.6; 2014 170.0; 2015 198.0; 2016 207.7; 2017 199.1; 2018 233.8. Central Bank-Claims on nonresidents: 2013 150.6; 2014 170.0; 2015 198.0; 2016 207.8; 2017 199.2; 2018 233.8.
  - Montserrat Reserve Assets in IIP: 2013 40.5; 2014 45.1; 2015 51.5; 2016 49.4; 2017 47.6; 2018 50.1. Central Bank-Claims on nonresidents: same values.
  - St. Kitts and Nevis Reserve Assets in IIP: 2013 302.0; 2014 327.3; 2015 288.4; 2016 320.5; 2017 365.1; 2018 363.2. Central Bank-Claims on nonresidents: 2013 297.5; 2014 323.3; 2015 284.6; 2016 316.8; 2017 361.8; 2018 361.0.
  - St. Lucia Reserve Assets in IIP: 2013 192.2; 2014 257.7; 2015 317.5; 2016 305.5; 2017 321.8; 2018 285.8. Central Bank-Claims on nonresidents: 2013 192.4; 2014 257.8; 2015 317.7; 2016 305.7; 2017 321.9; 2018 285.8.
  - St. Vincent and Grenadines Reserve Assets in IIP: 2013 135.1; 2014 157.4; 2015 172.7; 2016 192.3; 2017 182.1; 2018 169.6. Central Bank-Claims on nonresidents: same values.

*Source: Guidance Note (GN) on Treatment of Centralized Currency Unions in Macroeconomic Statistics and related Outcomes and Annexes.*

### 31. The strong adherence to the solidarity principle in WAEMU challenges the current guidance on

### b3-treatment-of-centralized-currency-unions-in-macroeconomic-statistics - 31. The strong adherence to the solidarity principle in WAEMU challenges the current guidance on

### Challenge to guidance on imputing Reserve Assets (RA)
- The strong adherence to the solidarity principle in WAEMU challenges the current guidance on imputing RA.
- Well-established central bank surveys within the monetary statistics framework in each WAEMU member separately identify the NAs claims on nonresidents as net foreign assets.
- RA data are disseminated in the IIP/balance of payments separately for each member.
- Compilers appear to use the NAs claims on nonresidents in 1SR as a proxy of RA recorded in the IIP in Burkina Faso, Cote d’Ivoire, and Senegal in recent years.

### Comparison of Reserve Assets (IIP) vs. Central Bank Claims on Nonresidents (1SR) — WAEMU members (millions of US Dollars)
- Burkina Faso — Reserve Assets in IIP:
  - 2012: 1,025
  - 2013: 628
  - 2014: 297
  - 2015: 260
  - 2016: 51
  - 2017: 1,649
  - 2018: 1619
  - 2019: 1795
- Burkina Faso — Central Bank-claims on Nonresidents:
  - 2012: 1,017
  - 2013: 616
  - 2014: 643
  - 2015: 926
  - 2016: 996
  - 2017: 1,649
  - 2018: 1620
  - 2019: 1795
- Cote d'Ivoire — Reserve Assets in IIP:
  - 2012: 3,928
  - 2013: 4,225
  - 2014: 4,487
  - 2015: 4,702
  - 2016: 4,147
  - 2017: 6,257
  - 2018: 6341
- Cote d'Ivoire — Central Bank-claims on Nonresidents:
  - 2012: 4,457
  - 2013: 4,806
  - 2014: 5,165
  - 2015: 5,516
  - 2016: 4,935
  - 2017: 6,257
  - 2018: 6344
  - 2019: 7419
- Senegal — Reserve Assets in IIP:
  - 2012: 2,082
  - 2013: 2,253
  - 2014: 2,039
  - 2015: 2,012
  - 2016: 1,554
  - 2017: 1,914
  - 2018: 2405
- Senegal — Central Bank-claims on Nonresidents:
  - 2012: 2,101
  - 2013: 2,099
  - 2014: 2,042
  - 2015: 1,988
  - 2016: 1,554
  - 2017: 1,914
  - 2018: 2466

### Annex III — Numerical examples: overview and key balance-sheet effects
- Setup: A centralized union central bank (CUCB) and national agencies (NAs) of member economies; initial Example 1 opening balances assume the CUCB has no assets/liabilities on “own account.”
- Example 1 — Opening period (CUCB and NAs):
  - CUCB Balance Sheet:
    - Assets: RA 500; Claims on CU residents 1500; Total 2000
    - Liabilities: Banknotes 1600; Deposits of CU banks 400; Total 2000
  - NA—Economy A Balance Sheet:
    - Assets: Net claim on CUCB-RA 300; Domestic assets (residents of A) 950; Bank deposits (residents of A) 250; Total 1250
    - Liabilities: Banknotes 1000; Total 1250
  - NA—Economy B Balance Sheet:
    - Assets: Net claim on CUCB-RA 200; Domestic assets (residents of B) 550; Bank deposits (residents of B) 150; Total 750
    - Liabilities: Banknotes 600; Total 750
- Example 2 — Economy A exports 100 to Economy Y (paid in foreign exchange):
  - CUCB RA increases to 600; Deposits of CU banks increase to 500; CUCB Total 2100
  - NA—Economy A net claim on CUCB-RA increases to 400; Bank deposits (residents of A) increase to 350; NA A Total 1350
  - NA—Economy B unchanged from Example 1 (Total 750)
- Example 3 — Economy A exports 100 to Economy B (settled in domestic currency):
  - CUCB balances remain at Total 2000
  - NA—Economy A net claim on CUCB-RA increases to 400; NA A Total 1350
  - NA—Economy B net claim on CUCB-RA decreases to 100; NA B Total 650
- Example 4 — Economy A imports 400 from Economy Y (paid in foreign exchange):
  - CUCB RA decreases to 100; Claims on CU residents increase to 1650; Deposits of CU banks 150; CUCB Total 1750
  - NA—Economy A net claim on CUCB-RA becomes -100; Domestic assets (residents of A) 1100; Bank deposits 0; NA A Total 1000
  - NA—Economy B unchanged (Total 750)
- Example 5 — CUCB lends 100 to a bank in Economy A:
  - CUCB Claims on CU residents increase to 1600; Deposits of CU banks 500; CUCB Total 2100
  - NA—Economy A net claim on CUCB-RA remains 300; Domestic assets (residents of A) 1050; Bank deposits 350; NA A Total 1350
- Example 6 — Bank in Economy A lends 100 to a bank in Economy B:
  - CUCB balances unchanged at Total 2100
  - NA—Economy A net claim on CUCB-RA decreases to 200; Bank deposits (residents of A) 250; NA A Total 1250
  - NA—Economy B net claim on CUCB-RA increases to 300; Bank deposits (residents of B) 250; NA B Total 850
- Example 7 — Government of Economy A borrows 100 from IMF:
  - CUCB RA increases to 600; Deposits of CU banks 500; CUCB Total 2100
  - NA—Economy A net claim on CUCB-RA increases to 400; Bank deposits (residents of A) 350; NA A Total 1350
  - Alternative when contractual debtor is NA of Economy A:
    - NA—Economy A records IMF credit and loans 100; Net claim on CUCB-RA 400; Bank deposits (residents of A) 250; NA A Total 1350
- Example 8 — HQ of CUCB borrows 300 from government of Economy Y (own-account transaction with nonresidents):
  - CUCB RA increases to 800; Loans to nonresidents 300; CUCB Total 2300
  - NAs remain as in Example 1 (NA A Total 1250; NA B Total 750)
- Example 9 — CUCB lends 300 to government of Economy B (channeled through NA of Economy B):
  - CUCB Claims on CU residents increase to 1800; Deposits of CU banks increase to 700; Loans to nonresidents remain 300; CUCB Total 2600
  - NA—Economy B counterparty entries: Net claim on CUCB-RA 200; Domestic assets (residents of B) 850; Bank deposits (residents of B) 450; NA B Total 1050
  - NA—Economy A unchanged (Total 1250)
- Example 10 — Government of Economy B uses 300 for imports from Economy Y (paid in foreign exchange):
  - CUCB RA becomes 500; Claims on CU residents 1800; Deposits of CU banks 400; Loans to nonresidents 300; CUCB Total 2300
  - NA—Economy B net claim on CUCB-RA becomes -100; Bank deposits (residents of B) 150; NA B Total 750
  - NA—Economy A unchanged (Total 1250)

---


_Source: https://www.imf.org/-/media/files/data/statistics/bpm6/approved-guidance-notes/b3-treatment-of-centralized-currency-unions-in-macroeconomic-statistics.pdf_