## 2028 Monetary and Financial Statistics Manual (MFSM) — Proposed Recommendation 2.20: Classification of Reserve Position in the IMF

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**Canonical URL:** [2028 Monetary and Financial Statistics Manual (MFSM) — Proposed Recommendation 2.20: Classification of Reserve Position in the IMF](https://www.imf.org/-/media/files/data/statistics/mfsac/recommendations/pr-mfs-update-220-classification-of-reserve-position-in-the-imf.pdf)

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### Summary
- The proposed recommendation is to:
  - explicitly state in the updated 2028 Monetary and Financial Statistics Manual (2028 MFSM) that a member country's reserve position in the IMF is recorded under other deposits, and
  - classify the reserve position in the IMF by original maturity as long-term, consistent with the nature of its main component, the reserve tranche.
- Links to related guidance: BPM Clarification Note 4: Classification of Reserve Position in the IMF; 2025 System of National Accounts (SNA) and Integrated Balance of Payments and International Investment Position Manual, Seventh Edition (BPM7).
- Discussions: BOPCOM: March 2020, October 2017; MFSAC: March 2026.
- Global Consultation(s): Not applicable.

### Background and Issues
- The BPM clarification note (CN) on the Classification of Reserve Position in the IMF clarifies that the reserve position in the IMF should be classified as other deposits without a maturity breakdown.
- The central bank sectoral balance sheet SRF 1SR (MFSMCG Table A2.1) currently classifies the “Reserve position in the Fund” under “Other deposits” with nonresidents in foreign currency, while the definition of Other Deposits (MFSMCG para 4.43 h) currently includes only reserve tranche position under “other deposits”.
- The CN recommends classifying the reserve position in the IMF by original maturity as long-term to reflect the nature of its main component, the reserve tranche, because:
  - The reserve tranche has no stated maturity but its characteristics align with a long-term instrument, even though it is available on short notice for balance of payments needs.
  - Other indebtedness of the IMF in the General Resources Account typically carries long-term maturities (e.g. 10 years).
  - Using a long-term maturity attribution avoids requiring compilers to distinguish short-term versus long-term maturity within the reserve position in the IMF.
- Annex 7.3 Supplementary Data of the MFSMCG recommends compiling data on financial instruments disaggregated by maturity on a quarterly basis, highlighting the need to clarify classification of the reserve position within the two maturity categories—short-term and long-term.
- BPM7 further elaborates on the reserve position in the IMF (paras., 6.89, A9.11-A9.12 and A9.16). The Glossary of Terms and Definitions in Macroeconomic Statistics in the 2025 SNA includes updated definitions of the reserve position and the reserve tranche position in the IMF. These elaborations and updated definitions will be incorporated into the 2028 MFSM.

### Proposed Recommendations
- Update the definition of other deposits (paragraph 4.43 h of the MFSMCG) to include the reserve position in the IMF, instead of reserve tranche position.
- Expand descriptions of the “Reserve position in the Fund” (RPF) and “Reserve tranche position in the Fund” (RTP) in line with BPM7 and the 2025 SNA Glossary of Terms and Definitions in Macroeconomic Statistics.
- Clarify that if classification of the Reserve position in the IMF by original maturity is deemed necessary, it should be categorized as long-term, reflecting the nature of its primary component, the reserve tranche.

### Rationale for Proposed Recommendations
- The proposed recommendations aim to clarify the classification of reserve position in the IMF by original maturity and to align MFSM definitions and classifications with BPM7 and the 2025 SNA Glossary of Terms and Definitions in Macroeconomic Statistics.
- Classifying the reserve position as long-term reflects the nature of the reserve tranche and avoids impractical maturity distinctions for compilers.

### Proposed Text and Edits for the 2028 MFSM
- Incorporate updated text of BPM7 (paras. 5.48, 6.89, A9.11, and A9.16) and the 2025 SNA Glossary of Terms and Definitions in Macroeconomic Statistics into the relevant 2028 MFSM sections relating to RPF and RTP.
- Specific paragraph edits recommended:
  - Para 4.43h: recognize the reserve position in the IMF as a category under other deposits, instead of only RTP.
  - Para 4.246 of Annex 4. Accounts with the IMF: include description of Reserve position in the fund in line with BPM7 paras 6.89 and A9.11-A9.12 in the Glossary of Terms and Definitions in Macroeconomic Statistics; include a footnote indicating that if a classification of reserve position in the IMF by original maturity is deemed necessary, it should be attributed as long-term, in line with the nature of the reserve tranche.

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_Source: https://www.imf.org/-/media/files/data/statistics/mfsac/recommendations/pr-mfs-update-220-classification-of-reserve-position-in-the-imf.pdf_