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

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---

### Background and scope
- Appendix 3 of the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6) covers regional arrangements such as currency unions (CUs) and their treatment in external sector statistics (ESS).
- BPM6 distinguishes two CU models:
  - Centralized: CU central bank (CUCB) owned by governments of member economies; common currency issued by CUCB; central bank operations in each economy carried out by branches or national agencies (NAs).
  - Decentralized: CU comprises a CUCB and CU national central banks (CUNCBs) of the member economies with the CUCB being owned by the CUNCBs.
- Centralized models are observed in CEMAC, WAEMU, and ECCU; the decentralized model is observed in the euro area.
- The appendix addresses three practical concerns: imputed reserve assets (RA) under solidarity principles; residency attribution of NAs; and the concept of CUCB “own account transactions.”

### Key findings and conceptual clarifications
- Residency of NAs
  - BPM6 treats NAs in a centralized CU as institutional units separate from the CUCB headquarters; central bank functions are deemed to be carried out by resident NAs in each member economy.
  - Where no NA is established, a notional resident institutional unit is to be created for statistical recording.
  - This treatment facilitates compiling national macroeconomic frameworks and portrays monetary authority transactions with resident units as domestic.
- Domestic vs cross-border attribution
  - Assets and liabilities of resident units vis-à-vis the monetary authority are treated as domestic when central bank functions are attributed to resident NAs (BPM6, paragraph A3.33).
  - If risks and rewards of transactions/positions reside with the CUCB (a non-resident), such transactions/positions are cross-border and recorded in external statistics.
- CUCB acting on its own account
  - 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 (BPM6, paragraph A3.35).
  - Example in BPM6: debt securities issued by the CUCB and subscribed by residents are recorded as portfolio investment (assets) in the national balance of payments.
  - Further guidance is needed on attributing particular CUCB balance sheet items (e.g., credit to government and domestic banks; banknotes denominated in domestic currency; domestic banks’ deposits) between the CUCB headquarters and the NAs.

### Imputed reserve assets (RA) and the solidarity principle
- Purpose and calculation
  - 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).
  - Basic formula referenced: Net claims on CUCB = Reserve Money (RM) - Net Domestic Assets (NDA) for each economy.
- Solidarity-principle implications
  - In some centralized CUs (WAEMU, CEMAC) member states pool foreign assets in a common reserve fund.
  - WAEMU: the solidarity principle is strong and BCEAO does not disseminate member imputed shares.
  - CEMAC: imputed RA are regularly compiled.
  - ECCU: the solidarity principle applies but less strongly and member countries own/hold a national share of the common pool.
  - The solidarity principle implies any member can access the full pool irrespective of contributions; this challenges imputing RA to members in some unions.
  - Intra-union balances channeled through the CUCB (liaison accounts) affect members’ net claims on CUCB and therefore their imputed shares of RA (BPM6, paragraph A3.37). The GN considers no additional guidance needed on this specific point.
- Recommended approach on imputed RA
  - Maintain BPM6 guidance: derive imputed RA using net claims on the CUCB.
  - Alternative recording under other investment in national Balance of Payments and IIP of CU member states is possible where the solidarity principle is in place, but such alternative treatment is not recommended.

### Treatment of NAs and related transactions/positions
- Recommended residency attribution
  - The GN recommends that NAs continue to be treated as residents of the economies of their location.
- Implications for national statistics
  - Where NAs are resident units, monetary authority transactions with resident units (e.g., lending to government and banks, domestic banks’ deposits, banknotes in circulation) should be attributed to the NAs and treated as domestic transactions/positions.
  - The methodology used for centralized CUs is de facto applied in decentralized systems (e.g., euro area): national central banks’ transactions with residents are considered domestic.
- Notional units and data availability
  - When NAs are not physically established, statistical notional units must be constructible and capable of compiling meaningful sets of accounts, including balance sheets, consistent with institutional unit recognition principles (BPM6, paragraph 4.13).

### CUCB own-account transactions — definition, scope, and implications
- Definition and scope
  - Own-account transactions are those that cannot be attributed to NAs.
  - For the most part, the balance sheet of the CUCB could be seen as the sum of the balance sheets of the NAs, implying most CUCB transactions are recorded in the imputed balance sheet of the NAs (i.e., resident-resident transactions).
  - Own-account transactions are recommended to be limited to those beyond regular operations of monetary authorities of an economy.
- Examples and practice
  - Example of an own-account transaction: CUCB borrowing from another central bank/government or IO — such transactions should be recorded in the balance of payments of the CU and not attributed to any member economy.
  - Direct borrowing by the CUCB through issuance of securities or by taking external debt could be possible, although it has not occurred in practice as yet.
  - In CEMAC/WAEMU, direct lending from BEAC/BCEAO to the governments of member economies is not permitted.
  - ECCB temporary advances to member government/other institutional units channeled through NAs are reflected in their notional balance sheets and thus are treated as resident-resident transactions.
- Recommended restriction
  - The GN recommends that CUCB own-account transactions with CU residents 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).
- Policy relevance
  - Clear criteria are needed to attribute transactions/positions to CUCB headquarters versus NAs’ balance sheets to ensure consistent national balance of payments and IIP statistics and to develop the CUCB “own account transactions” concept in future manuals.

### Outcomes, options considered, and GN recommendations
- Issues considered: imputed RA; interpretation of the role of NAs and their transactions with residents; and CUCB own account transactions and positions.
- Issue 1 — Imputed RA
  - Current practice:
    - BPM6 guidance on attribution of RA based on net claims on the CUCB is applied in CEMAC and ECCU; data are available to implement this guidance.
    - WAEMU: strong adherence to the solidarity principle challenges current guidance; BCEAO does not compile imputed RA for WAEMU members citing the solidarity principle, although central bank surveys identify NA claims on nonresidents and RA data are disseminated in the IIP/balance of payments for each member where compiled.
  - GN proposed options:
    - Option 1.1 (preferred option): Maintain BPM6 guidance using net claims on the CUCB for deriving imputed RA.
    - Option 1.2 (alternative—not recommended): Record RA only in the balance sheet of the CUCB and not in the national balance of payments and IIP of CU Member States; net claims on the CUCB could be recorded under other investment in national balance of payments and IIP of CU Member States, with clarification in ESS metadata.
- Issue 2 — Role of NAs and transactions with residents
  - GN proposed options:
    - Option 2.1 (preferred option): Maintain BPM6 guidance to treat NAs (including notional resident units) as residents of 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 balance sheet of the NA and treated as resident-resident transactions.
    - Option 2.2 (rejected option): Do not recognize NAs as residents; transactions/positions of residents with CUCB would be recorded as resident-nonresident, with wide consequences for external assets/liabilities and sectoral positions.
- Issue 3 — CUCB own account transactions
  - GN proposed options:
    - Option 3.1 (preferred option): No changes to the concept of “own account” transactions/positions in BPM6; clarify that own account transactions are those that do not relate to regular operations of monetary authorities of an economy.
    - Option 3.2 (rejected option): Consistent with Option 2.2, record all transactions/positions between resident units and CUCB in the balance of payments/IIP of the member economy, treating all CUCB transactions as “own account”.
- GN recommendation and consensus
  - Recommend options 1.1, 2.1, and 3.1 to ensure consistency with BPM6 principles: residency of institutional units, uniform treatment of institutions fulfilling functions of monetary authorities, and data comparability across countries for policy/surveillance purposes.
  - Option 1.2 could be an alternative for cases like WAEMU, but it is not recommended.
  - The Balance of Payments Task Team (BPTT) overwhelmingly supported options 1.1, 2.1, and 3.1.
  - Most members considered numerical examples in Annex III useful for clarifying conceptual issues and supported presenting them as part of the updated appendix on currency unions in BPM7; some members suggested reducing the length of examples or including them in the updated BPM6 Compilation Guide.

### Practical compilation observations and numerical examples
- Regional practice highlights
  - CEMAC: BEAC computes and reports imputed RA for members following BPM6; BEAC keeps foreign exchange reserves of all member economies in its books per Article 26 and Article 28 of the Convention Governing the Monetary Union.
  - WAEMU: BCEAO stopped publishing imputed reserves by member in 2017 due to the strong solidarity principle; monetary and financial statistics still separately identify NAs’ claims on nonresidents and RA are disseminated in IIP and balance of payments for each member where compiled.
  - ECCU: imputed RA are computed following BPM6 identity: NFA(X) = RM(X) - NDA(X).
- Selected numerical alignments (examples of exact values reported)
  - CEMAC — Cameroon (Reserve Assets in IIP 2012–2019): 3,431; 3,508; 3,204; 3,568; 2,260; 3,235; 3502; 3765
  - CEMAC — Cameroon (Central Bank-claims on Nonresidents 2012–2018): 3,431; 3,508; 3,204; 3,568; 2,260; 3,235; 3502
  - ECCU — Anguilla (Reserve Assets in IIP 2013–2018): 41.0; 47.3; 48.1; 55.6; 76.4; 65.5 (Central Bank-Claims on nonresidents identical: 41.0; 47.3; 48.1; 55.6; 76.4; 65.5)
  - WAEMU — Burkina Faso (Reserve Assets in IIP 2012–2019): 1,025; 628; 297; 260; 51; 1,649; 1619; 1795 (Central Bank-claims on Nonresidents: 1,017; 616; 643; 926; 996; 1,649; 1620; 1795)
  - WAEMU — Cote d'Ivoire (Reserve Assets in IIP 2012–2019): 3,928; 4,225; 4,487; 4,702; 4,147; 6,257; 6341 (Central Bank-claims on Nonresidents: 4,457; 4,806; 5,165; 5,516; 4,935; 6,257; 6344; 7419)
- Annex III — illustrative balance-sheet examples (selected opening and transaction cases with exact balances)
  - Example 1 (opening): CUCB Assets — RA 500; Claims on CU residents 1500; Total 2000. CUCB Liabilities — Banknotes 1600; Deposits of CU banks 400; Total 2000.
  - NA Balance Sheet—Economy A (Example 1): Assets — Net claim on CUCB-RA 300; Domestic assets 950; Bank deposits 250; Total 1250. Liabilities — Banknotes 1000; Total 1250.
  - Example 2 (Economy A exports 100 to Economy Y, paid in foreign exchange): CUCB Assets — RA 600; Claims on CU residents 1500; Total 2100. CUCB Liabilities — Banknotes 1600; Deposits of CU banks 500; Total 2100. NA Balance Sheet—Economy A Assets — Net claim on CUCB-RA 400; Domestic assets 950; Bank deposits 350; Total 1350.
  - Example 4 (Economy A imports 400 from Economy Y, paid in foreign exchange): CUCB Assets — RA 100; Claims on CU residents 1650; Total 1750. CUCB Liabilities — Banknotes 1600; Deposits of CU banks 150; Total 1750. NA Balance Sheet—Economy A Assets — Net claim on CUCB-RA -100; Domestic assets 1100; Bank deposits 0; Total 1000.
  - Example 8 (CUCB HQ borrows 300 from government of Economy Y — own-account transaction with nonresidents): CUCB Assets — RA 800; Claims on CU residents 1500; Loans to nonresidents 300; Total 2300. CUCB Liabilities reflect corresponding loans; NA Balance Sheets for Economies A and B remain as in Example 1.
  - Example 10 (Government of Economy B uses 300 for imports from Economy Y): CUCB Assets — RA 500; Claims on CU residents 1800; Loans to nonresidents 300; Total 2300. CUCB Liabilities — Banknotes 1600; Deposits of CU banks 400; Total 2300. NA Balance Sheet—Economy B Assets — Net claim on CUCB-RA -100; Domestic assets 850; Bank deposits 150; Total 750.

*Appendix 3 of the sixth edition of the Balance of Payments and International Investment Position Manual, prepared by the IMF Statistics Department.*

### 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)

### Background and scope
- Appendix 3 of the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6) covers regional arrangements such as currency unions (CUs) and their treatment in external sector statistics (ESS).
- BPM6 distinguishes two CU models:
  - Centralized: CU central bank (CUCB) owned by governments of member economies; common currency issued by CUCB; central bank operations in each economy carried out by branches or national agencies (NAs).
  - Decentralized: CU comprises a CUCB and CU national central banks (CUNCBs) of the member economies with the CUCB being owned by the CUNCBs.
- Centralized models are observed in CEMAC, WAEMU, and ECCU; the decentralized model is observed in the euro area.
- The appendix addresses three practical concerns raised by users: imputed reserve assets (RA) under solidarity principles; residency attribution of NAs; and the concept of CUCB “own account transactions.”

### Key findings and conceptual clarifications
- Residency of NAs
  - BPM6 treats NAs in a centralized CU as institutional units separate from the CUCB headquarters, implying central bank functions are deemed to be carried out by resident NAs in each member economy.
  - Where no NA is established, a notional resident institutional unit is to be created for statistical recording.
  - This treatment facilitates compiling national macroeconomic frameworks and portrays monetary authority transactions with resident units as domestic.
- Domestic vs cross-border attribution
  - Assets and liabilities of resident units vis-à-vis the monetary authority are treated as domestic when central bank functions are attributed to resident NAs (BPM6, paragraph A3.33).
  - If risks and rewards of transactions/positions reside with the CUCB (a non-resident), such transactions/positions would be cross-border and recorded in external statistics.
- CUCB acting on its own account
  - 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 (BPM6, paragraph A3.35).
  - BPM6 provides an example: debt securities issued by the CUCB and subscribed by residents are recorded as portfolio investment (assets) in the national balance of payments.
  - Further guidance is needed on attributing particular CUCB balance sheet items (e.g., credit to government and domestic banks; banknotes denominated in domestic currency; domestic banks’ deposits) between the CUCB headquarters and the NAs.

### Imputed reserve assets (RA) and the solidarity principle
- Purpose and calculation
  - 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).
  - Basic formula referenced: Net claims on CUCB = Reserve Money (RM) - Net Domestic Assets (NDA) for each economy.
- Solidarity-principle implications
  - In some centralized CUs (WAEMU, CEMAC) member states pool foreign assets in a common reserve fund; in WAEMU the solidarity principle is strong and BCEAO does not disseminate member imputed shares; in CEMAC imputed RA are regularly compiled; in ECCU the solidarity principle applies but less strongly and member countries own/hold a national share of the common pool.
  - The solidarity principle implies that any member can access the full pool irrespective of contributions; this challenges imputing RA to members in some unions.
  - Intra-union balances channeled through the CUCB (liaison accounts) affect members’ net claims on CUCB and therefore their imputed shares of RA (BPM6, paragraph A3.37). The GN considers no additional guidance needed on this specific point.
- Recommended approach on imputed RA
  - Maintain BPM6 guidance: derive imputed RA using net claims on the CUCB.
  - Alternative recording under other investment in national Balance of Payments and IIP of CU member states is possible where the solidarity principle is in place, but such alternative treatment is not recommended.

### Treatment of NAs and related transactions/positions
- Recommended residency attribution
  - The GN recommends that NAs continue to be treated as residents of the economies of their location.
- Implications for national statistics
  - Where NAs are resident units, monetary authority transactions with resident units (e.g., lending to government and banks, domestic banks’ deposits, banknotes in circulation) should be attributed to the NAs and treated as domestic transactions/positions.
  - The methodology used for centralized CUs is de facto applied in decentralized systems (e.g., euro area): national central banks’ transactions with residents are considered domestic.
- Notional units and data availability
  - When NAs are not physically established, statistical notional units must be constructible and capable of compiling meaningful sets of accounts, including balance sheets, consistent with institutional unit recognition principles (BPM6, paragraph 4.13).

### CUCB own-account transactions — scope and limitations
- Recommended restriction
  - The GN recommends that CUCB own-account transactions with CU residents 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).
- Policy relevance
  - Clear criteria are needed to attribute transactions/positions to CUCB headquarters versus NAs’ balance sheets to ensure consistent national balance of payments and IIP statistics and to develop the CUCB “own account transactions” concept in future manuals.

### Practical and compilation observations
- Regional practices and examples
  - CEMAC: BEAC computes and reports imputed RA for members following BPM6; BEAC keeps foreign exchange reserves of all member economies in its books per Article 26 and Article 28 of the Convention Governing the Monetary Union.
  - WAEMU: BCEAO stopped publishing imputed reserves by member in 2017 due to strong solidarity principle; monetary and financial statistics still separately identify NAs’ claims on nonresidents and RA are disseminated in IIP and balance of payments for each member where compiled.
  - ECCU: imputed RA are computed following BPM6 identity: NFA(X) = RM(X) - NDA(X).
- Examples provided in Annex III (illustrative guidance)
  - Example 1: Opening statistical balance sheet of CUCB and the NAs
  - Example 2: Extra-union export of CU member economy A (follow-up to example 1)
  - Example 3: Intra-union export of CU member economy A settled in domestic currency (follow-up to example 1)
  - Example 4: Extra-union imports of CU member economy A (follow-up to example 1)
  - Example 5: CUCB lends to a bank in CU member economy A in 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

### GN recommendations (summary)
- NAs should continue to be treated as residents of the economies of their location.
- CUCB own-account transactions with CU residents should be limited to transactions not attributable to NAs (i.e., not part of regular monetary authority operations).
- Maintain BPM6 guidance on imputed RA: derive imputed RA using net claims on the CUCB; alternative recording under other investment at the national level is possible under a solidarity principle but is not recommended.

*Appendix 3 of the sixth edition of the Balance of Payments and International Investment Position Manual, prepared by the IMF Statistics Department.*

### 16. Users have raised questions on the residency attribution of NAs transactions with other

### b3-treatment-of-centralized-currency-unions-in-macroeconomic-statistics - 16. Users have raised questions on the residency attribution of NAs transactions with other

### Residency attribution of national directorates/branches (NAs) and ultimate risk
- Residence attribution of transactions of NAs is not based on whether the ultimate loss-bearing falls on the CUCB; “Who bears the ultimate risk” is not the criterion for deciding residency of branches and quasi-corporations’ assets and liabilities.
- BPM6, paragraph 4.26: when a nonresident unit has substantial operations over a significant period in an economic territory, but no separate legal entity for those operations, a branch may be identified as an institutional unit for statistical purposes because the operations have a strong connection to the location of operations in all ways other than incorporation.
- This principle applies to residence attribution of transactions of NAs of the BCEAO, BEAC, and ECCB.

### CUCB “own account” transactions — definition, scope, and implications
- CUCB “own account” transactions should be clarified relative to the role of NAs and other national institutional units.
- BPM6 guidance: 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.
- Practical misinterpretation risk: some users may view CUCB liquidity/other operations with members as taking place exclusively through the (nonresident) CUCB, viewing NAs only as conduits; this could contradict BPM6 guidance.

- Clarification of “own account”:
  - Own account transactions are those that cannot be attributed to NAs.
  - For the most part, the balance sheet of the CUCB could be seen as the sum of the balance sheets of the NAs, implying most CUCB transactions are recorded in the imputed balance sheet of the NAs (i.e., resident-resident transactions).
  - Own account transactions are recommended to be limited to those beyond regular operations of monetary authorities of an economy.
  - Example of an own account transaction: CUCB borrowing from another central bank/government or IO — such transactions should be recorded in the balance of payments of the CU and not attributed to (nor recorded in the Balance of Payments or the IIP of) any member economy.

- Scope and practice:
  - Scope of “own account” transactions with CU residents is limited under BPM6.
  - Direct borrowing by the CUCB through issuance of securities or by taking external debt could be possible, although it has not occurred in practice as yet.
  - Member countries typically raise funds by issuing securities (including in the international markets), bilateral loans, and credit and loans from the IMF.
  - In CEMAC/WAEMU, direct lending from BEAC/BCEAO to the governments of member economies is not permitted.
  - ECCB temporary advances to member government/other institutional units channeled through NAs are reflected in their notional balance sheets and thus are treated as resident-resident transactions.

### Outcomes and options considered by the GN (summary)
- The GN discussed options on three issues: imputed reserve assets (RA); interpretation of the role of NAs and their transactions with residents; and CUCB own account transactions and positions.

Issue 1 — Imputed RA
- Current practice:
  - BPM6 guidance on attribution of RA based on the net claims on the CUCB is applied in CEMAC and ECCU. Data are available to implement this guidance (even though currency in circulation in each economy is somehow estimated); estimates of transactions and positions for each member country are included in the respective national balance of payments and IIP statistics.
  - WAEMU: strong adherence to the solidarity principle challenges current guidance on imputing RA. BCEAO does not compile imputed RA for WAEMU members citing the solidarity principle, although central bank surveys within monetary statistics identify NA claims on nonresidents and RA data are disseminated in the IIP/balance of payments separately for each member, which match NA claims on nonresidents in recent years.

- GN proposed options for recording imputed RA:
  - Option 1.1 (preferred option): Maintain BPM6 guidance using net claims on the CUCB for deriving imputed RA.
  - Option 1.2 (alternative—not recommended): Record RA only in the balance sheet of the CUCB and not in the national balance of payments and IIP of CU Member States; net claims on the CUCB could be recorded under other investment in national balance of payments and IIP of CU Member States, with clarification in ESS metadata of individual member countries.

Issue 2 — Role of NAs and transactions with residents
- GN proposed options:
  - Option 2.1 (preferred option): Maintain BPM6 guidance to treat NAs (including notional resident units) as residents of 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 balance sheet of the NA for statistical purposes and treated as resident-resident transactions. Well-established central bank surveys in each CU member separately identify the NA’s balance sheet for statistical purposes.
  - Option 2.2 (rejected option): Do not recognize NAs as residents; transactions/positions of residents of an economy with CUCB would be recorded as resident-nonresident transactions/positions. Consequences of Option 2.2 include significant increases in gross external assets/liabilities (including external debt) of member economies; monetary operations of a central bank would be recorded as cross-border; transactions between resident units through accounts at the CUCB would result in changes in sectoral positions through reclassification; and concerns on evenhanded treatment of member economies of the IMF from surveillance and statistical perspectives.

Issue 3 — CUCB own account transactions
- GN proposed options:
  - Option 3.1 (preferred option): No changes to the concept of “own account” transactions/positions discussed in BPM6, consistent with Option 2.1 treating NAs as residents. Clarify BPM6 text such that own account transactions are those that do not relate to regular operations of monetary authorities of an economy.
  - Option 3.2 (rejected option): Consistent with Option 2.2, record all transactions/positions between resident units of an economy and CUCB in the balance of payments/IIP of the member economy, meaning all transactions of CUCB (both with residents and nonresidents of CU) would be considered as “own account”.

### Recommendations and consensus
- GN recommendation:
  - Recommend options 1.1, 2.1, and 3.1 to ensure consistency with BPM6 principles: residency of institutional units, uniform treatment of institutions fulfilling functions of monetary authorities, and data comparability across countries for policy/surveillance purposes.
  - Option 1.2 could be an alternative for cases like WAEMU, where the CUCB (the BCEAO) does not calculate imputed reserves on account of the solidarity principle, but this alternative is not recommended.

- BPTT support:
  - The Balance of Payments Task Team (BPTT) overwhelmingly supported options 1.1, 2.1, and 3.1 recommended in the GN.
  - Most members considered numerical examples in Annex III useful to clarify conceptual issues and supported presenting them as part of the updated appendix on currency unions in BPM7; some members suggested reducing the length of examples or including them in the updated BPM6 Compilation Guide to avoid overloading BPM7.

### Numerical example and data practice (CEMAC illustration)
- Imputed RA in CEMAC:
  - Imputed RA is calculated as the sum of (i) items directly imputed to each member state based on primary accounting records (foreign banknotes), and (ii) items not directly attributed during primary accounting but giving rise to closing balances on liaison accounts ("Account of Operations with the French Treasury" and "Current Accounts with Foreign Correspondents").
  - Central bank surveys in all CEMAC members separately identify NA claims on nonresidents as net foreign assets; RA data are disseminated in the IIP/balance of payments separately for each member and generally match NA claims on nonresidents in the IIP.
  - Compilers use NA claims on nonresidents from 1SR as a proxy of RA in the IIP for Cameroon.

- Table 1. Reserve Assets (IIP) vs. Central Bank Claims on Nonresidents (1SR) of CEMAC Countries (millions of US Dollars) — Cameroon 2012–2019:
  - Reserve Assets in IIP: 3,431; 3,508; 3,204; 3,568; 2,260; 3,235; 3502; 3765
  - Central Bank-claims on Nonresidents: 3,431; 3,508; 3,204; 3,568; 2,260; 3,235; 3502

*Source: IMF GN on centralized currency unions treatment in macroeconomic statistics (section 16 and Section II outcomes, Annex I and II excerpts).*

### 29. The imputed reserves of each member country in the ECCU are computed as the difference

### Treatment of Centralized Currency Unions in Macroeconomic Statistics — Imputed Reserves and Numerical Examples

### Imputed reserves in the ECCU
- Imputed reserves of each ECCU member country are computed as the difference between the assets held by the member country with the ECCB and the liability of the member country to the ECCB.
- Identity used: 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).
- Changes in imputed reserves are used as a proxy for balance of payments reserve flows.
- Monetary surveys in ECCU member countries identify net foreign assets (NA claims on nonresidents) separately.
- Reserve assets (RA) data are disseminated in the IIP/balance of payments separately for each member; NA claims on nonresidents generally match RA in the IIP for ECCU members.

- Table 2 — Reserve Assets (IIP) vs. Central Bank Claims on Nonresidents (1SR) of ECCU Countries (Millions of US Dollars), 2013–2018:
  - Anguilla
    - Reserve Assets in IIP: 41.0, 47.3, 48.1, 55.6, 76.4, 65.5
    - Central Bank-Claims on nonresidents: 41.0, 47.3, 48.1, 55.6, 76.4, 65.5
  - Antigua and Barbuda
    - Reserve Assets in IIP: 202.6, 297.1, 355.7, 330.1, 313.6, 328.7
    - Central Bank-Claims on nonresidents: 202.7, 297.1, 355.8, 330.2, 313.7, 328.7
  - Dominica
    - Reserve Assets in IIP: 87.1, 101.5, 126.2, 221.9, 212.3, 191.3
    - Central Bank-Claims on nonresidents: 87.1, 101.5, 126.3, 221.9, 212.3, 191.3
  - Grenada
    - Reserve Assets in IIP: 150.6, 170.0, 198.0, 207.7, 199.1, 233.8
    - Central Bank-Claims on nonresidents: 150.6, 170.0, 198.0, 207.8, 199.2, 233.8
  - Montserrat
    - Reserve Assets in IIP: 40.5, 45.1, 51.5, 49.4, 47.6, 50.1
    - Central Bank-Claims on nonresidents: 40.5, 45.1, 51.5, 49.4, 47.6, 50.1
  - St. Kitts and Nevis
    - Reserve Assets in IIP: 302.0, 327.3, 288.4, 320.5, 365.1, 363.2
    - Central Bank-Claims on nonresidents: 297.5, 323.3, 284.6, 316.8, 361.8, 361.0
  - St. Lucia
    - Reserve Assets in IIP: 192.2, 257.7, 317.5, 305.5, 321.8, 285.8
    - Central Bank-Claims on nonresidents: 192.4, 257.8, 317.7, 305.7, 321.9, 285.8
  - St. Vincent and Grenadines
    - Reserve Assets in IIP: 135.1, 157.4, 172.7, 192.3, 182.1, 169.6
    - Central Bank-Claims on nonresidents: 135.1, 157.4, 172.7, 192.3, 182.1, 169.6

### WAEMU: solidarity principle and reserve asset imputation
- Strong adherence to the solidarity principle in WAEMU presents challenges for current guidance on imputing RA.
- Central bank surveys within monetary statistics in each WAEMU member identify NA 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 NA claims on nonresidents in 1SR as a proxy for RA recorded in the IIP in Burkina Faso, Cote d’Ivoire, and Senegal in recent years.

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

### Annex III — Numerical examples illustrating recording conventions (selected balances and transactions)
- Example 1: Opening period (CUCB has no own-account assets/liabilities)
  - CUCB Balance Sheet
    - Assets: RA 500; Claims on CU residents 1500; Total 2000
    - Liabilities: Banknotes 1600; Deposits of CU banks 400; Total 2000
  - NA Balance Sheet—Economy A
    - 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 Balance Sheet—Economy B
    - 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 Balance Sheet after transaction
    - Assets: RA 600; Claims on CU residents 1500; Total 2100
    - Liabilities: Banknotes 1600; Deposits of CU banks 500; Total 2100
  - NA Balance Sheet—Economy A
    - Assets: Net claim on CUCB-RA 400; Domestic assets 950; Bank deposits 350; Total 1350
    - Liabilities: Banknotes 1000; Total 1350
  - NA Balance Sheet—Economy B unchanged from Example 1 (Total 750)

- Example 3: Economy A exports 100 to B (settled in domestic currency)
  - CUCB Balance Sheet remains: RA 500; Claims on CU residents 1500; Total 2000
  - NA Balance Sheet—Economy A
    - Assets: Net claim on CUCB-RA 400; Bank deposits 350; Total 1350
  - NA Balance Sheet—Economy B
    - Assets: Net claim on CUCB-RA 100; Bank deposits 50; Total 650

- Example 4: Economy A imports 400 from Economy Y (paid in foreign exchange)
  - CUCB Balance Sheet after transaction
    - Assets: RA 100; Claims on CU residents 1650; Total 1750
    - Liabilities: Banknotes 1600; Deposits of CU banks 150; Total 1750
  - NA Balance Sheet—Economy A
    - Assets: Net claim on CUCB-RA -100; Domestic assets 1100; Bank deposits 0; Total 1000
    - Liabilities: Banknotes 1000; Total 1000
  - NA Balance Sheet—Economy B unchanged (Total 750)

- Example 5: CUCB lends 100 to a bank in Economy A
  - CUCB Balance Sheet
    - Assets: RA 500; Claims on CU residents 1600; Total 2100
    - Liabilities: Banknotes 1600; Deposits of CU banks 500; Total 2100
  - NA Balance Sheet—Economy A
    - Assets: Net claim on CUCB-RA 300; Domestic assets 1050; Bank deposits 350; Total 1350

- Example 6: Bank in Economy A lends 100 to a bank in Economy B
  - CUCB Balance Sheet
    - Assets: RA 500; Claims on CU residents 1600; Total 2100
    - Liabilities: Banknotes 1600; Deposits of CU banks 500; Total 2100
  - NA Balance Sheet—Economy A
    - Assets: Net claim on CUCB-RA 200; Domestic assets 1050; Bank deposits 250; Total 1250
  - NA Balance Sheet—Economy B
    - Assets: Net claim on CUCB-RA 300; Domestic assets 550; Bank deposits 250; Total 850

- Example 7: Government of Economy A borrows 100 from IMF
  - CUCB Balance Sheet after transaction
    - Assets: RA 600; Claims on CU residents 1500; Total 2100
    - Liabilities: Banknotes 1600; Deposits of CU banks 500; Total 2100
  - NA Balance Sheet—Economy A
    - Assets: Net claim on CUCB-RA 400; Domestic assets 950; Bank deposits 350; Total 1350
  - Alternative recording if contractual debtor is NA of Economy A: IMF credit and loans 100 appear on NA Balance Sheet—Economy A (Total 1350)

- Example 8: CUCB HQ borrows 300 from government of Economy Y (nonmember) — own-account transaction with nonresidents
  - CUCB Balance Sheet
    - Assets: RA 800; Claims on CU residents 1500; Loans to nonresidents 300; Total 2300
    - Liabilities: Banknotes 1600; Deposits of CU banks 400; Loans to nonresidents (liability side reflected); Total 2300
  - NA Balance Sheets for Economies A and B remain as in Example 1 (Totals 1250 and 750 respectively)

- Example 9: CUCB lends 300 to government of Economy B (channeled through NA of Economy B)
  - CUCB Balance Sheet
    - Assets: RA 800; Claims on CU residents 1800; Loans to nonresidents 300; Total 2600
    - Liabilities: Banknotes 1600; Deposits of CU banks 700; Total 2600
  - NA Balance Sheet—Economy B (after channeling)
    - Assets: Net claim on CUCB-RA 200; Domestic assets 850; Bank deposits 450; Total 1050

- Example 10: Government of Economy B uses 300 for imports from Economy Y (paid in foreign exchange)
  - CUCB Balance Sheet after transaction
    - Assets: RA 500; Claims on CU residents 1800; Loans to nonresidents 300; Total 2300
    - Liabilities: Banknotes 1600; Deposits of CU banks 400; Total 2300
  - NA Balance Sheet—Economy B
    - Assets: Net claim on CUCB-RA -100; Domestic assets 850; Bank deposits 150; Total 750

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