Review Of The Fund’s Policy On Multiple Currency Practices : Initial Considerations

Author/Editor:

International Monetary Fund. Legal Dept. ; International Monetary Fund. Monetary and Capital Markets Department ; International Monetary Fund. Strategy, Policy, & Review Department ; International Monetary Fund. Research Dept.

Publication Date:

June 10, 2019

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This paper reviews the Fund’s policy on multiple currency practices (MCPs). There remain strong economic and legal reasons to retain a policy on MCPs. The over-arching aim of the review is to make the policy and its application more effective. Based on this review, the paper proposes initial considerations for reforming features of the policy that have created challenges. • Clarifying the concept of “official action” to focus on measures that segment FX markets. • Eliminating potentiality. • Updating the threshold for permissible FX spreads. • Adjusting approval policies. • Reviewing links with capital transactions. • Considering merits of a remedial framework.

Series:

Policy Paper No. 19/015

Subject:

English

Publication Date:

June 10, 2019

ISBN/ISSN:

9781498318860/2663-3493

Stock No:

PPEA2019015

Price:

Free

Format:

Paper

Pages:

130

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