Connect with IMF Institute
Monetary, Exchange Rate, and Capital Account Policies

Exchange Rate Policy (ERP)

Deadline passed

Session No.: CE 24.25

Location: Kuwait City, Kuwait

Date: October 27, 2024 - November 7, 2024 (2 weeks)

Delivery Method: In-person Training

Primary Language: English

    Target Audience

    Junior to mid-level officials who work with exchange rate policy and analysis.

    Back to top

    Qualifications

    Participants are expected to have an advanced degree in economics or equivalent professional experience and be comfortable with Microsoft Excel and Excel-based applications.  Participants are expected to also have a working knowledge of EViews.

    Back to top

    Course Description

    This course, presented by the Institute for Capacity Development, gives a comprehensive overview of exchange rate analysis and policy. Topics covered include:   Key exchange rate concepts (real, nominal, bilateral, multilateral, spot, forward) and arbitrage conditions (UIP, law of one price, PPP, relative PPP); its role in achieving internal and external balance (adjustment to overall equilibrium under floating and fixed exchange rate regimes); its role in economic growth (undervaluation, Washington Consensus, the Balassa-Samuelson effect).   Exchange rate policy and regimes (taxonomy, impossible trinity) and associated policy mix (monetary policy independence, financial stability, fiscal policy, capital controls).   Practical Problems of Exchange Rate Policy in Developing and Emerging Market Economies (concerns of excessive volatility; de jure vs. de facto regimes; competitiveness, price stability; exchange-rate pass-through; targets and instruments).   Transitions from rigid to flexible exchange rates regimes (motives; speed of transition; deep and liquid domestic FX markets, derivatives markets, coherent intervention policy, nominal anchor; transition sequence).    FX interventions (sterilized or non-sterilized; motivations, channels, effectiveness, instruments, tactics, policy communication).   Currency crisis (causes, role of macroeconomic and prudential policies).   Assessing reserve adequacy (ARA).   External Balance Assessment (EBA).   Early warning system.

    Back to top

    Course Objectives

    Upon completion of this course, participants should be able to: 

    • Assess reserve adequacy with traditional and the IMF ARA metric.  
    • Assess external balance position with EBA and EBA-lite methodologies.  
    • Construct systems for early warning of currency crises using data on nominal exchange rates and international reserves. 
    • Describe the exchange rate regime choice and how country-specific features could influence the choice. 
    Back to top

    Apply Now - Application deadline approaching:

    IMF offers online training to government officials and the public. Click Learn more to find our current offerings.

    Monetary Policy (MP)

    English | January 27, 2025 - March 7, 2025 | Blended Training | Ebene, Mauritius

    Apply online by December 13, 2024

    Debt Sustainability Framework for Low-Income Countries - LIC-DSF

    French | January 20-24, 2025 | In-person Training | Ebene, Mauritius

    Apply online by December 13, 2024

    Financial Sector Surveillance (FSS)

    English | March 17-28, 2025 | In-person Training | Vienna, Austria

    Apply online by December 15, 2024

    Monetary Policy (MP)

    English | March 24, 2025 - April 4, 2025 | In-person Training | Vienna, Austria

    Apply online by December 15, 2024

    Implementing Effective Regulation and Supervision of Climate-related Financial Risks

    English | January 27-31, 2025 | In-person Training | Colombo, Sri Lanka

    Apply online by December 16, 2024