{
  "title": "IMF Executive Board Reviews Proposal to Update the Monetary and Financial Policies Transparency Code",
  "publication": "IMF News, May 13, 2019",
  "sourceUrl": "https://www.imf.org/en/news/articles/2019/05/13/pr19163-imf-executive-board-reviews-proposal-update-monetary-financial-policies-transparency-code",
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  "summary": "On April 29, 2019, the Executive Board of the International Monetary Fund (IMF) discussed a staff paper proposing to replace the Monetary and Financial Policies Transparency (MFPT) Code with a new Central Bank Transparency (CBT) Code.",
  "publishDate": "2019-05-13",
  "sections": [
    {
      "heading": "Background and Rationale",
      "content": "- On April 29, 2019, the Executive Board of the International Monetary Fund (IMF) discussed a staff paper proposing to replace the Monetary and Financial Policies Transparency (MFPT) Code with a new Central Bank Transparency (CBT) Code.\n- The update is in line with the recommendations of the 2017 Joint Review of the Standards and Codes Initiative, indicating the need for risk-based assessments to support policy effectiveness and address macroeconomic risks.\n- Rationale for change:\n  - Remove overlap in the MFPT with transparency elements of financial policies covered by other international standards.\n  - Expand central bank transparency standard to a broader set of activities undertaken by many central banks since the Global Financial Crisis (GFC), including changes in monetary policy practices."
    },
    {
      "heading": "Scope and Design of the Proposed CBT",
      "content": "- Key design features:\n  - Modular, risk-based, and proportional setup to account for country-specific circumstances.\n  - Applicability to all IMF members, including less-developed economies.\n  - Orientation toward risk-based assessments to support policy effectiveness and address macroeconomic risks.\n- Intended uses:\n  - Serve as a tailored diagnostic tool in IMF capacity development.\n  - Support IMF surveillance such as Article IV reviews and Financial Sector Assessment Programs.\n  - Be useful in an IMF Program context, as was the case for the MFPT."
    },
    {
      "heading": "Executive Board Assessment",
      "content": "- Press Release No. 19/163; discussion dated April 29, 2019; release dated May 13, 2019.\n- Summary of Directors’ views:\n  - Welcomed consideration of the staff proposal to update the MFPT Code and endorsed replacing the MFPT with the CBT.\n  - Viewed the proposed CBT as appropriate to remove overlap with other FSB standards and to expand transparency standards reflecting post-GFC central bank activities.\n  - Supported reorienting transparency standards to facilitate risk-based assessments in line with the 2017 Joint Review.\n  - Emphasized that the CBT should be relevant for all member countries, including less‑developed and smaller economies.\n  - Agreed that the modular approach would help facilitate a risk‑based and proportional application taking into account country‑specific circumstances and needs.\n  - Broad concurrence that CBT can serve as a diagnostic tool in capacity development and help central banks map their transparency frameworks.\n  - Many Directors considered CBT assessments could help support Fund surveillance.\n  - Some Directors underscored the importance of clarifying the voluntary nature of the CBT.\n- Directors’ procedural expectations:\n  - Asked for broader consultation on the proposed CBT, including with monetary authorities, other international institutions, and the Executive Board.\n  - Requested more regular updates to the Executive Board as the CBT is developed.\n- Note on qualifiers:\n  - An explanation of any qualifiers used in the summing up can be found here: https://www.imf.org/external/np/sec/misc/qualifiers.htm."
    },
    {
      "heading": "Governance, Confidentiality, and Balance",
      "content": "- Directors welcomed that the CBT will take as given the mandates, policies, and governance arrangements of central banks.\n- Clarifications:\n  - The CBT will not provide a central bank governance framework, nor is it a means to assess or pass judgement on the governance of central banks.\n- Trade-offs highlighted:\n  - Central banks face trade‑offs between transparency and the legitimate need for confidentiality.\n  - The CBT should strike an appropriate balance between transparency and confidentiality, preserving flexibility for market-sensitive information and financial stability and policy effectiveness objectives."
    },
    {
      "heading": "Advisory Group and Consultations",
      "content": "- Directors supported convening an international Advisory Group to provide guidance to staff in elaborating the new code.\n- Expectations for the Advisory Group:\n  - Members should be selected from diverse backgrounds and regions to ensure broad representation of views and experiences."
    },
    {
      "heading": "Administrative and Contact Information",
      "content": "- Press Release date: May 13, 2019.\n- Press office contact:\n  - PRESS OFFICER: Meera Louis\n  - Phone: +1 202 623-7100\n  - Email: MEDIA@IMF.org\n\nIMF Executive Board Reviews Proposal to Update the Monetary and Financial Policies Transparency Code — Press Release No. 19/163, May 13, 2019\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/external/np/sec/misc/qualifiers.htm\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2019/05/13/pr19163-imf-executive-board-reviews-proposal-update-monetary-financial-policies-transparency-code"
    }
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    "Published: May 13, 2019",
    "On April 29, 2019, the Executive Board of the International Monetary Fund (IMF) discussed a staff paper proposing to replace the Monetary and Financial Policies Transparency (MFPT) Code with a new Central Bank Transparency (CBT) Code.",
    "The update is in line with the recommendations of the 2017 Joint Review of the Standards and Codes Initiative, indicating the need for risk-based assessments to support policy effectiveness and address macroeconomic risks.",
    "Rationale for change:",
    "Key design features:",
    "Intended uses:",
    "Press Release No. 19/163; discussion dated April 29, 2019; release dated May 13, 2019.",
    "Summary of Directors’ views:",
    "Directors’ procedural expectations:",
    "Note on qualifiers:",
    "Directors welcomed that the CBT will take as given the mandates, policies, and governance arrangements of central banks.",
    "Clarifications:",
    "Trade-offs highlighted:",
    "Directors supported convening an international Advisory Group to provide guidance to staff in elaborating the new code.",
    "Expectations for the Advisory Group:",
    "Press Release date: May 13, 2019.",
    "Press office contact:",
    "[https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)",
    "[The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)",
    "[Press Releases](https://www.imf.org/en/news/searchnews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[https://www.imf.org/external/np/sec/misc/qualifiers.htm](https://www.imf.org/external/np/sec/misc/qualifiers.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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