Interim Review of The Adequacy of The Fund’s Precautionary Balances
December 16, 2021
Download PDF
More Formats on IMF eLibrary
Order a Print CopySummary
Precautionary balances are a key element of the Fund’s multilayered framework to mitigate financial risks. Overall financial risks remain elevated but have not increased significantly since the last review. Staff proposes to leave the medium-term target of SDR 25 billion, and the minimum floor of SDR 15 billion, unchanged at this time. With the projected increase in lending income, the pace of reserve accumulation is expected to remain adequate relative to the medium-term indicative target. The paper also reviews policy factors discussed in recent Board meetings that affect the level and accumulation of reserves.
Subject: COVID-19, Credit, Credit risk, Expenditure, Financial regulation and supervision, Health, Income, Monetary policy, Money, National accounts, Pension spending, Political economy
Keywords: COVID-19, Credit, Credit risk, D. financial risks, Global, Income, income volatility, Pension spending, risk management framework, totaling SDR, transparency policy
Pages:
50
Volume:
2021
DOI:
Issue:
073
Series:
Policy Paper No. 2021/073
Stock No:
PPEA2021073
ISBN:
9781616357528
ISSN:
2663-3493
