## Principles

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**Canonical URL:** [Principles](https://www.imf.org/en/data/cbt/principles)

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- [Markdown version](/en/data/cbt/principles/index.md)
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### General Principle on Central Bank Transparency
- Purpose: To strengthen accountability and, as a prerequisite for Autonomy, enhance transparency and accountability of the central bank and contribute to policy effectiveness, while taking legitimate needs for confidentiality into account.
- Scope: Central banks disclose their governance, policies, operations, outcomes of policies and operations, and official relations with government, domestic, foreign, and international agencies, and other institutions.
- Note: The CBT is not intended as a governance code.

### Pillar I—Central Bank Governance
- 1.1. Legal Structure: Disclose Legal Framework in a manner that is clear and Easily accessible.
- 1.2. Mandate: Disclose Mandate—including Objectives, Functions, and legally defined Powers—in a manner that is clear and Easily accessible.
- 1.3. Autonomy: Disclose Autonomy as defined in legislation/regulations, revealing extent, forms, and conditions of autonomy in a clear and Easily accessible manner.
  - 1.3.1. Institutional/Operational Autonomy: Clarify prohibition on seeking or taking instructions; disclose variation of Autonomy across Mandate elements; clarify goal or instrument Autonomy where appropriate.
  - 1.3.2. Functional Autonomy: Clarify whether duties can be performed without prior government approval.
  - 1.3.3. Personal Autonomy: Clarify Security of Tenure for Decision-making Bodies, including eligibility, disqualification, appointment and dismissal procedures, remuneration, duration of tenure.
  - 1.3.4. Financial Autonomy: Disclose financial resources, capital, recapitalization rules, budget, reserves, provisions, profit distribution mechanism, monetary financing, and applicable accounting standards.
- 1.4. Decision-Making Arrangement: Disclose organizational structure and allocation of responsibilities to Decision-making Bodies.
- 1.5. Risk Management: Disclose principal risks (financial, operational, legal) and the framework to manage them, including Risk Governance Structure and Risk Strategy.
  - 1.5.1. Risk Exposure: Disclose principal risks required to meet Objectives.
  - 1.5.2. Risk Framework: Disclose process for identifying risks, overall Risk Strategy, and Risk Governance Structure.
- 1.6. Accountability Framework: Disclose transparency and reporting mechanisms to internal bodies, political institutions, and the public.
  - 1.6.1. Arrangements: Identify internal/external audit arrangements and compliance; reporting to audit committee or Board; external publication of audited financial statements and annual reports.
  - 1.6.2. Tools:
    - Independently Audited Financial Statements: Disclose auditing and accounting standards and compliance frameworks; provide information to assess financial performance and transactions with government and stakeholders.
    - Internal Audit: Disclose internal audit framework, compliance, and scope of responsibilities.
    - Audit Committee: Disclose existence and published activities of internal oversight body reporting to the Board.
  - 1.6.3. Anti-Corruption Measures and Internal Code of Conduct: Disclose applicability of domestic anti-Corruption legislation and internal Code of Conduct specifics.
  - 1.6.4. Human Capital Management: Disclose policies and practices on governance and management of human capital.
- 1.7. Communication: Disclose means, methods, and forms of communication to stakeholders.
  - 1.7.1. Arrangement: Disclose organizational structure, responsibilities, and processes relevant for communication.
  - 1.7.2. Strategy/Tools: Disclose Objectives, target audiences, channels, and tools of communication policy.
- 1.8. Confidentiality: Disclose policy on confidentiality or secrecy of central bank information and reasons for disclosure choices.

### Pillar II—Central Bank Policies
- 2.1 Monetary Policy: Publicly and clearly disclose Objectives, policy framework, and instruments.
  - 2.1.1. Objectives and Framework: Disclose Monetary Policy Framework and strategy.
  - 2.1.2. Policy Decisions: Timely disclosure of decisions, explanation of how decisions foster Objectives, and disclosure of process including meeting calendar and voting procedures.
  - 2.1.3. Supporting Analysis: Disclose relevant economic information and supporting analysis informing decisions.
- 2.2 Cross-Border Financial Flows and Foreign Exchange Administration: Disclose role, objective(s), legal and institutional frameworks, policy decisions, and decision-making process.
  - 2.2.1. Objectives and Framework: Disclose objectives, legal/institutional frameworks, strategy, and delegation modalities where applicable.
  - 2.2.2. Policy Decisions: Announce, explain, and disclose policy decisions in a timely manner; clarify decision process.
  - 2.2.3. Supporting Analysis: Disclose supporting analysis and intended outcomes in a timely manner.
- 2.3 Foreign Exchange Management: Disclose policy Objectives, hierarchy of Objectives, operational framework, and intervention instruments.
  - 2.3.1. Objectives and Framework: Disclose policy Objectives and legal, operational, and institutional frameworks, consistent with the chosen foreign exchange regime.
  - 2.3.2. Policy Decisions: Disclose decision-making process, rationale for instruments, and means/methods of reaching decisions; explain potential impact in a timely manner.
  - 2.3.3. Supporting Analysis: Disclose assumptions, transmission channels, analysis backing intervention decisions, and ex-post evaluation of economic impact.
- 2.4 Foreign Exchange Reserve Management: Disclose policy Objectives, key considerations, oversight allocation, and potential impact.
  - 2.4.1. Objectives and Framework: Disclose broad investment Objectives, operative models, oversight allocation, and institutional framework.
  - 2.4.2. Policy Decisions: Disclose key elements of policy formulation, related risk exposures, instruments, decision-making hierarchy, and oversight allocation.
  - 2.4.3. Supporting Analysis: Disclose key assumptions and assessment process related to policy decisions.
- 2.5 Macroprudential: Clearly communicate Objectives, decision-making process, instruments, indicators, and supporting analysis for macroprudential measures.
  - 2.5.1. Objectives and Framework: Disclose macroprudential policy framework, Objectives, instruments, and strategy.
  - 2.5.2. Policy Decisions: Publicly announce macroprudential decisions in a timely manner and disclose decision-making process.
  - 2.5.3. Supporting Analysis: Disclose key indicators and analyses used to assess need; explain rationale and expected transmission channels.
- 2.6 Microprudential Supervision: Selected principles from BCP, ICP, and IOSCO (see Annex).
- 2.7 Emergency Liquidity Assistance: Disclose scope and Objectives while maintaining necessary confidentiality to preserve financial stability and support monetary policy.
- 2.8 Resolution: Selected principles from KA (see Annex).
- 2.9 Financial Market Infrastructures: Selected principles from PFMI (see Annex).
- 2.10 Financial Integrity: Disclose policies and Powers for Anti-Money Laundering/Countering the Financing of Terrorism supervision and describe internal control framework relating to Money Laundering/Terrorist Financing risk.
- 2.11 Consumer Protection: Disclose policies relating to Consumer Protection, conducted solely or jointly with other agencies.

### Pillar III—Central Bank Operations
- 3.1 Monetary Policy: Disclose operational framework with operational target, Objectives, instruments, collateral, and access criteria.
  - 3.1.1. Instruments: Disclose Monetary Policy Instruments.
  - 3.1.2. Coverage: Disclose type of instrument, characteristics of each instrument, and collateral framework.
  - 3.1.3. Access: Disclose monetary policy counterparties’ framework.
- 3.2 Cross-Border Financial Flows and Foreign Exchange Administration: Disclose implementation instruments and scope of operations.
  - 3.2.1. Instruments: Define and disclose instruments and circumstances for use.
  - 3.2.2. Coverage: Disclose regulated persons, transactions, licensing/approval/monitoring/sanctioning scope, and foreign exchange transactions performed.
- 3.3 Foreign Exchange Management: Disclose implementation in terms of instruments, markets, size, and mode of access.
  - 3.3.1. Instruments: Disclose instruments, selection considerations, eligibility criteria, and mode of access.
  - 3.3.2. Coverage: Disclose targeted markets and agents.
- 3.4 Foreign Exchange Reserve Management: Disclose principles governing operations, and relationships with counterparties and service providers.
  - 3.4.1. Instruments: Disclose selection criteria for eligible asset classes, composition of instruments, investment horizon and constraints.
  - 3.4.2. Coverage: Disclose criteria to select eligible counterparties, service providers, and markets.
  - 3.4.3. Assessment: Disclose criteria to assess adequacy and liquidity parameters and publish analysis regularly at predetermined times.
- 3.5 Financial Stability Assessments and Stress Testing: Periodically disclose assessment of domestic financial stability and transparency about stress testing framework.
  - 3.5.1. Financial Stability Assessments: Periodically provide assessment of risk to financial stability, including new and emerging sources of vulnerability.
  - 3.5.2. Macroprudential Stress Testing Methods: Disclose methods and key assumptions of stress testing.
  - 3.5.3. Stress Testing Coverage: Disclose coverage of stress testing exercises.
  - 3.5.4. Central Bank Use of Stress Test Results: Clarify how stress test results are used.
- 3.6 Macroprudential Policy Implementation: Disclose design of instruments and enforcement arrangements.
  - 3.6.1. Instruments: Disclose precise design and Objectives of instruments, and scope of entities and instruments subject to constraints.
  - 3.6.2. Enforcement: Disclose enforcement mechanisms and responsibilities.
- 3.7 Microprudential Supervision: Selected principles from BCP, ICP, and IOSCO (see Annex).
- 3.8 Emergency Liquidity Assistance: May disclose ongoing provision and conditions once confidentiality is no longer required.
- 3.9 Resolution: Selected principles from KA (see Annex).
- 3.10 Financial Market Infrastructures: Selected principles from PFMI (see Annex).
- 3.11 Financial Integrity: Disclose AML/CFT supervisory processes and resources allocated to internal AML/CFT controls.
- 3.12 Consumer Protection: Disclose operations relating to Consumer Protection conducted solely or jointly with other agencies.

### Pillar IV—Central Bank Outcome
- 4.1 Monetary Policy: Be transparent about outcomes of monetary policy conduct.
  - 4.1.1. Governance Actions: Clarify to whom accountability is owed and how it is discharged.
  - 4.1.2. Policies: Disclose progress toward achieving monetary policy objective(s) and prospects.
  - 4.1.3. Operations: Disclose volumes and interest rates of operations and level of operational target achieved.
- 4.2 Cross-Border Financial Flows and Foreign Exchange Administration: Disclose outcomes of policy implementation.
  - 4.2.1. Governance Actions: Disclose to whom accountability on the policy is owed and how it is discharged.
  - 4.2.2. Policies: Regularly disclose results in achieving policy Objectives.
  - 4.2.3. Implementation: Regularly disclose results of policy implementation.
- 4.3 Foreign Exchange Management: Disclose accountability and reporting on foreign exchange interventions.
  - 4.3.1. Governance Actions: Disclose decision-making structure and accountability for Foreign Exchange Management.
  - 4.3.2. Policies: Disclose role of Foreign Exchange Management toward policy objectives and interaction with broader monetary policy Objectives.
  - 4.3.3. Operations: Disclose results of market operations, volume of activity, and direction of interventions on website at a predefined time lag.
- 4.4 Foreign Exchange Reserve Management: Disclose changes to internal governance principles and outcomes.
  - 4.4.1. Governance Actions: Publicly disclose general principles of internal governance to ensure integrity of policy formulation and operations.
  - 4.4.2. Reporting on Implementation: Disclose data on level and composition of reserve assets, short-term liabilities, and drains at a predefined frequency.
  - 4.4.3. Financial Results: Ensure clarity in audited financial statements on amount, composition, profit/loss, and risks from reserves.
- 4.5 Macroprudential Policy: Disclose outcomes and evaluations of macroprudential actions and accountability.
  - 4.5.1. Governance Actions: Clarify to whom accountability is owed and how it is discharged.
  - 4.5.2. Policies: Disclose ex-post evaluations of macroprudential policies.
- 4.6 Microprudential Supervision: Selected principles from BCP, ICP, and IOSCO (see Annex).
- 4.7 Emergency Liquidity Assistance: Framework allows appropriate disclosure of provision, terms, conditions, and amounts provided while maintaining confidentiality as long as required.
- 4.8 Resolution: Selected principles from KA (see Annex).
- 4.9 Financial Market Infrastructures: Selected principles from PFMI (see Annex).
- 4.10 Financial Integrity: Disclose outcomes of AML/CFT supervisory actions and oversight of internal AML/CFT controls.
- 4.11 Consumer Protection: Clarify results and implications of Consumer Protection policies and operations conducted solely or jointly with other agencies.

### Pillar V—Central Bank Official Relations
- 5.1 Government: Disclose relationship with the government, including information exchange, policy coordination, financial aspects such as rules on profit distribution, and clearly distinguish roles and modalities.
  - 5.1.1. Disclose institutional relationship between central bank and government/agencies.
  - 5.1.2. Publicly disclose policies and terms governing financial transactions with government, including fiscal agent role, current account management, deposit taking, advances, guarantees, loans and credit arrangements, and agency services.
  - 5.1.3. Define and publicly disclose instruments used in interactions with government/agencies.
  - 5.1.4. Publicly disclose regularly the outcome of interactions and operations with government/agencies.
- 5.2 Domestic Financial Agencies: Disclose relationships with domestic financial agencies relevant to the Mandate and Functions.
  - 5.2.1. Clearly define and publicly disclose relationships, cooperation and information-sharing arrangements.
  - 5.2.2. Make transparent the policies, instruments, and outcomes of interactions.
  - 5.2.3. Disclose role, responsibility, actions, and any advice received with respect to macroprudential policy.
  - 5.2.4. Disclose arrangements to restore or maintain financial stability, including data sharing, liquidity support, and decision responsibilities at each stage.
- 5.3 Foreign Agencies: Disclose dealings with international organizations, foreign governments, other central banks, and relevant foreign agencies, including nature of interactions and any obligations or commitments.
  - 5.3.1. Clearly define and publicly disclose relationships for information exchange and policy coordination.
  - 5.3.2. Publicly disclose policies, terms, and conditions governing interactions.
  - 5.3.3. Define and publicly disclose instruments used in interactions, including financial transactions.
  - 5.3.4. Publicly disclose regularly the outcome of relationships with foreign agencies.
- 5.4 Other Relations: Disclose involvement with private or semi-public institutions.
  - 5.4.1. Disclose investments in and ownership of subsidiaries and joint ventures with private, semi-public, or public entities.

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## Content in this bundle

- **Central Bank Transparency Code—Self-Review**
  - [Central Bank Transparency Code—Self-Review (Markdown version)](/-/media/files/data/cbt/landing-page/imf-central-bank-transparency-code-self-review.docx.md){rel="alternate" type="text/markdown"}
  - [Central Bank Transparency Code—Self-Review (DOCX)](/-/media/files/data/cbt/landing-page/imf-central-bank-transparency-code-self-review.docx){rel="external" type="application/vnd.openxmlformats-officedocument.wordprocessingml.document"}

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_Source: https://www.imf.org/en/data/cbt/principles_