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

_Policy Papers, June 10, 2019_

## Source details

**Canonical URL:** [Review Of The Fund’s Policy On Multiple Currency Practices: Initial Considerations](https://www.imf.org/en/publications/policy-papers/issues/2019/06/07/review-of-the-funds-policy-on-multiple-currency-practices-initial-considerations-46974)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2019/06/07/review-of-the-funds-policy-on-multiple-currency-practices-initial-considerations-46974/index.md)
- [Structured JSON version](/en/publications/policy-papers/issues/2019/06/07/review-of-the-funds-policy-on-multiple-currency-practices-initial-considerations-46974/index.json)
- [Bundle manifest](/en/publications/policy-papers/issues/2019/06/07/review-of-the-funds-policy-on-multiple-currency-practices-initial-considerations-46974/bundle-manifest.json)

## Bibliographic details
- Published: June 10, 2019
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9781498318860.007

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### Overview
- 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.
- Date: June 10, 2019
- Pages: 130

### Key proposed reforms and initial considerations
- 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.

### Rationale and emphasis
- Preserve a policy on MCPs because of strong economic and legal reasons.
- Make the policy and its application more effective by reforming features that have created challenges.
- Focus on measures that segment foreign exchange (FX) markets when defining “official action.”

### Subjects and keywords
- Subject: Currencies, Exchange rates, Exchange restrictions, Foreign exchange, Money, Multiple currency practices
- Keywords: article, Central Africa, Currencies, East Africa, Exchange rates, exchange restriction, Exchange restrictions, exchange transaction, fund member, Global, IMF's transparency policy, market, MCP Policy, Middle East, Multiple currency practices, PP, The Fund, transaction, transaction vis-à-vis

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## Content in this bundle

- **Policy Paper**
  - [Policy Paper (Markdown version)](/-/media/files/publications/pp/2019/ppea2019015.pdf.md){rel="alternate" type="text/markdown"}
  - [Policy Paper (PDF)](/-/media/files/publications/pp/2019/ppea2019015.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/policy-papers/issues/2019/06/07/review-of-the-funds-policy-on-multiple-currency-practices-initial-considerations-46974_