{
  "title": "Exchange Rate Policy (ERP)",
  "sourceUrl": "https://www.imf.org/en/capacity-development/training/icdtc/schedule/ce/2024/erpce24-25",
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  "summary": "Exchange Rate Policy Training Program Target Audience Junior to mid-level officials who work with exchange rate policy and analysis.",
  "publishDate": "2024-12-10",
  "sections": [
    {
      "heading": "Target audience and qualifications",
      "content": "- Target Audience: Junior to mid-level officials who work with exchange rate policy and analysis.\n- Qualifications:\n  - Participants are expected to have an advanced degree in economics or equivalent professional experience.\n  - Participants are expected to be comfortable with Microsoft Excel and Excel-based applications.\n  - Participants are expected to also have a working knowledge of EViews."
    },
    {
      "heading": "Course description — topics covered",
      "content": "- Key exchange rate concepts:\n  - real, nominal, bilateral, multilateral, spot, forward\n  - arbitrage conditions: UIP, law of one price, PPP, relative PPP\n- Role of exchange rates in macroeconomic objectives:\n  - achieving internal and external balance (adjustment to overall equilibrium under floating and fixed exchange rate regimes)\n  - role in economic growth (undervaluation, Washington Consensus, the Balassa-Samuelson effect)\n- Exchange rate policy and regimes:\n  - taxonomy, impossible trinity\n  - associated policy mix: monetary policy independence, financial stability, fiscal policy, capital controls\n- Practical problems in Developing and Emerging Market Economies:\n  - concerns of excessive volatility; de jure vs. de facto regimes; competitiveness, price stability; exchange-rate pass-through; targets and instruments\n- Transitions from rigid to flexible exchange rate regimes:\n  - motives; speed of transition; deep and liquid domestic FX markets, derivatives markets, coherent intervention policy, nominal anchor; transition sequence\n- FX interventions:\n  - sterilized or non-sterilized; motivations, channels, effectiveness, instruments, tactics, policy communication\n- Currency crisis:\n  - causes, role of macroeconomic and prudential policies\n- Assessing reserve adequacy:\n  - ARA\n- External Balance Assessment:\n  - EBA\n- Early warning systems:\n  - constructing systems for early warning of currency crises"
    },
    {
      "heading": "Course objectives",
      "content": "- Assess reserve adequacy with traditional and the IMF ARA metric.\n- Assess external balance position with EBA and EBA-lite methodologies.\n- Construct systems for early warning of currency crises using data on nominal exchange rates and international reserves.\n- Describe the exchange rate regime choice and how country-specific features could influence the choice."
    }
  ],
  "bullets": [
    "Target Audience: Junior to mid-level officials who work with exchange rate policy and analysis.",
    "Qualifications:",
    "Key exchange rate concepts:",
    "Role of exchange rates in macroeconomic objectives:",
    "Exchange rate policy and regimes:",
    "Practical problems in Developing and Emerging Market Economies:",
    "Transitions from rigid to flexible exchange rate regimes:",
    "FX interventions:",
    "Currency crisis:",
    "Assessing reserve adequacy:",
    "External Balance Assessment:",
    "Early warning systems:",
    "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."
  ],
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  },
  "generatedAtUtc": "2026-09-29T16:58:54.694Z"
}