Chapter

Appendix II. Financial Operations and Transactions

Author(s):
International Monetary Fund
Published Date:
October 2002
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The tables in this appendix supplement the information given in Chapter 6 on the IMF’s financial operations and policies. Components may not sum to total because of rounding.

Table II.1Arrangements Approved During Financial Years Ended April 30, 1953–2002
Financial

Year
Number of ArrangementsAmounts Committed Under Arrangements

(In millions of SDRs)
Stand-ByEFFSAFPRGFTotalStand ByEFFSAFPRGFTotal
1953225555
1954226363
1955224040
195624848
1957991,1621,162
195811111,0441,044
195915151,0571,057
19601414364364
19611515460460
196224241,6331,633
196319191,5311,531
196419192,1602,160
196524242,1592,159
19662424575575
19672525591591
196832322,3522,352
19692626541541
197023232,3812,381
19711818502502
19721313314314
19731313322322
197415151,3941,394
19751414390390
1976182201,1882841,472
1977191204,6805185,198
197818181,2851,285
1979144185081,0931,600
1980244282,4797973,277
19812111325,1985,22110,419
1982195243,1067,90811,014
1983274315,4508,67114,121
1984252274,287954,382
198524243,2183,218
1986181192,1238252,948
19872210324,1183584,476
198814115301,7022456702,617
198912147242,9562074279554,545
199016334263,2497,6273741511,328
199113223202,7862,338154545,593
199221215295,5872,49327438,826
199311318231,9711,242495273,789
199418217281,381779271,1703,357
1995173113113,0552,3351,19716,587
199619418329,6458,3811821,47619,684
199711512283,1831,1939115,287
19989482127,3363,0781,73832,152
199954101914,32514,09099829,413
2000114102515,7066,58264122,929
2001111142613,093-91,24914,333
200211092039,43801,78141,219
Table II.2Arrangements in Effect During Financial Years Ended April 30, 1991–2002
Financial

Year
Number of Arrangements as of April 30Amounts Committed Under Arrangements

as of April 30

(In millions of SDRs)
Stand-ByEFFSAFFRGFTotalStand-ByEFFSAFFRGETotal
19911451214452,7039,5975391,81314.652
1992227816534,83312,1591012,11119,203
1993156420454,4908,569832,13715,279
1994166322471,1314,504802,7138,428
19951991275613,1906,840493,30623,385
19962171285714,9639,3901823,38327,918
1997141135603,76410,1844,04817,996
19981413336028,32312,3364,41045,069
1999912355632,74711,4014,18648,334
20001611315845,6069,7983,51658,921
20012512438061,3059,7894,57675,670
2002268356974,3448,6974,20187,242
Table II.3Stand-By Arrangements in Effect During Financial Year Ended April 30, 2002(In millions of SDRs)
Arrangement DatesAmounts ApprovedUndrawn Balance
MemberEffective

date
Expiration

date
Prior to

FY2002
In FY2002At date of

termination
As of

April 30, 2002
Argentina3/10/003/9/0310,5866,3517,180
Bosnia and Herzegovina5/29/985/29/0194
Brazil12/2/989/14/0113,0253,554_
Brazil9/14/0112/13/0212,1448,469
Bulgaria2/27/022/26/04240208
Croatia, Republic of3/19/015/18/02200200
Ecuador4/19/0012/31/01227
Estonia3/1/008/31/012929
Gabon10/23/004/22/029379
Guatemela4/1/023/31/038484
Latvia4/20/0112/19/023333
Lithuania3/8/006/7/016262
Lithuania8/30/013/29/038787
Nigeria8/4/0010/31/01789789
Pakistan11/29/009/30/01465
Panama6/30/003/29/026464
Papua New Guinea3/29/009/28/0186
Peru3/12/011/31/02128128
Peru2/1/022/29/04255255
Romania10/31/014/29/03300248
Sri Lanka4/20/018/19/0220048
Turkey12/22/992/4/028,6766,3623,299
Turkey2/4/0212/31/04_12,8214,627
Uruguay5/31/003/31/02150
Uruguay4/1/023/31/04594472
Yugoslavia6/11/015/31/0220050
Total34,90639,4388,00421,961
Table II.4Extended Arrangements in Effect During Financial Year Ended April 30, 2002(In millions of SDRs)
Arrangement DatesAmounts ApprovedUndrawn Balance
MemberEffective

date
Expiration

date
Prior to

FY2002
In FY2002At date of

termination
As of

April 30, 2002
Bulgaria9/25/989/24/01628
Colombia12/20/9912/19/021,9571,957
Indonesia2/4/0012/31/033,6382,202
Jordan4/15/995/31/0212861
Kazakhstan12/13/993/19/02329329
Macedonia11/29/0011/22/012423
Ukraine9/4/989/3/021,920727
Yemen10/29/9710/28/017326
Total8,6973784,947
Table II.5Arrangements Under the Poverty Reduction and Growth Facility in Effect During Financial Year Ended April 30, 2002(In millions of SDRs)
Arrangement DatesAmount ApprovedUndrawm Balance
MemberEffective dateExpiration dateThrough April 30, 2001In FY2002At date of terminationAs of April 30, 2002
Albania5/13/987/31/0145
Armenia5/23/015/22/046959
Azerbaijan7/6/017/5/048064
Benin7/17/007/16/032712
Bolivia9/18/986/7/0210137
Burkina Faso9/10/999/9/02396
Cambodia110/22/992/28/035917
Cameroon12/20/0012/20/0311164
Cape Verde4/10/024/9/0597
Central African Republic7/20/981/19/024925
Chad21/7/001/6/03361216
Côte d’lvoire3/29/023/27/05293234
Djibouti10/18/9910/17/021910
Ethiopia33/22/013/21/04871342
Gambia, The6/29/9812/31/0121
Georgia1/12/011/11/0410881
Ghana45/3/9911/30/021923753
Guinea5/2/015/1/046451
Guinea-Bissau12/15/0012/14/03149
Guyana57/15/9812/31/015429
Honduras63/26/9912/31/0215748
Kenya8/4/008/3/03190156
Kyrgyz Republic76/6/9812/5/0473732962
Lao People’s Dem Rep4/25/014/24/043223
Lesotho3/9/013/8/042514
Macedonia, former8 Yugoslav Republic of12/18/0011/22/01109
Madagascar3/1/012/29/047957
Malawi12/21/0012/20/034539
Mali98/6/998/5/0347519
Mauritania7/21/997/20/024212
Moldova12/21/0012/20/0311192
Mongolia9/28/019/27/042824
Mozambique6/28/996/27/028725
Nicaragua3/18/983/17/0214934
Niger12/22/0012/21/035934
Pakistan12/6/0112/5/041,034861
Rwanda6/24/981/31/027110
São Tomé and Príncipe4/28/004/27/0375
Senegal4/20/984/19/0210711
Sierra Leone9/26/019/25/0413175
Tajikistan6/24/9812/24/0110022
Tanzania4/4/004/3/0313535
Vietnam4/13/014/12/04290207
Yemen10/29/9710/28/0126526
Zambia3/25/993/28/03254150
Total3,2981,8311952,700

Extended from 2/5/02.

Augmented by SDR 6 million on 5/16/01 and another million on 1/16/02.

Augmented by SDR 13 million on 3/18/02.

Augmented by SDR 37 million on 6/27/01.

Extended from 7/12/01.

Extended from 10/12/01.

Arrangement expired on 7/25/01. New arrangement started 12/6/01.

Cancelled 11/22/01.

Augmented by SDR 5 million on 7/25/01.

Extended from 2/5/02.

Augmented by SDR 6 million on 5/16/01 and another million on 1/16/02.

Augmented by SDR 13 million on 3/18/02.

Augmented by SDR 37 million on 6/27/01.

Extended from 7/12/01.

Extended from 10/12/01.

Arrangement expired on 7/25/01. New arrangement started 12/6/01.

Cancelled 11/22/01.

Augmented by SDR 5 million on 7/25/01.

Table II.6Summary of Disbursements, Repurchases, and Repayments, Financial Years Ended April 30, 1948–2002(In millions of SDRs)
Financial

Year
DisbursementsRepurchases and RepaymentsTotal Fund Credit Outstanding2
Purchases1Trust Fund

loans
SAF

loans
PRGF

loans
TotalRepurchasesTrust Fund

repayments
SAP/PRGF

repayments
Total
1948606606133
1949119119193
195052522424204
195128281919176
195246463737214
19536666185185178
1954231231145145132
1955494927627655
1956393927227672
19571,1141,1147575611
195866666687871,027
1959264264537537898
1960166166522522330
1961577577659659552
19622,2432,2431,2601,2601,023
19635805808078071,059
1964626626380380952
19651,8971,8975175171,480
19662,8172,8174064063,039
19671,0611,0613403402,945
19681,3481,3481,1161,1162,463
19692,8392,8391,5421,5423,299
19702,9962,9961,6711,6714,020
19711,1671,1671,6571,6572,556
19722,0282,0283,1223,122840
19731,1751,175540540998
19741,0581,0586726721,085
19755,1025,1025185184,869
19766,5916,5919609609,760
19774,910324,94286886813,687
19782,5032682,7714,4854,48512,366
19793,7206704,3904,8594,8599,843
19802,4339623,3953,7763,7769,967
19814,8601,0605,9202,8532,85312,536
19828,0418,0412,0102,01017,793
198311,39211,3921,555181,57426,563
198411,51811,5182,0181112,12934,603
19856,2896,2892,7302122,94337,622
19864,1014,1014,2894134,70236,877
19873,6851393,8246,1695796,74933,443
19884,1534454,5977,9355288,46329,543
19892,5412902643,0956,2584476,70525,520
19904,5034194085,3296,0423566,39824,388
19916,955844917,5305,4401685,60825,603
19925,3081254835,9164,76814,77026,736
19938,465205739,0584,083364,11928,496
19945,325506125,9874,348521124,51329,889
199510,6151457311,2023,98442444,23136,837
199610,8701821,29512,3476,69873957,10042,040
19974,9397055,6446,66855247,19640,488
199820,00097320,9733,78915954,38556,026
199924,07182624,89710,46562711,09267,175
20006,3775136,89022,99363423,62750,370
20019,59963010,22911,24358811,83148,662
200229,19495230,14619,20777719,98458,698

Includes reserve tranche purchases.

Excludes reserve tranche purchase.

Includes reserve tranche purchases.

Excludes reserve tranche purchase.

Table II.7Purchases and Loans from the IMF, Financial Year Ended April 30, 2002(In millions of SDRs)
MemberReserve

Tranche
Stand-By/

Credit Tranche
Extended

Fund Facility
SRFTotal

Purchases
PRGF

Loans
Total Purchases

and Loans
Albania55
Argentina1,5294,3935,9225,922
Armenia1010
Azerbaijan1616
Benin44
Bolivia1919
Bosnia/Herzegovina141414
Brazil1,9603,3175,2775,277
Bulgaria32528484
Burundi666
Burkina Faso1717
Cambodia1717
Cameroon3232
Cape Verde11
Central African Republic
Chad2121
Congo, Republic of
Côte D’lvoire5959
Djibouti44
Ecuador113113113
Egypt120120120
Ethiopia4141
Gambia, The77
Gabon
Georgia99
Ghana105105
Guinea1313
Guinea-Bissau
Guyana
Honduras1616
Indonesia585585585
Jordan303030
Kenya
Kyrgyz Republic1212
Lao, PDR55
Lesotho77
Macedonia (FYR)
Madagascar1111
Malawi
Mali1818
Mauritania1212
Moldova
Mongolia44
Mozambique88
Nicaragua
Niger1717
Pakistan210210172382
Papua New Guinea191919
Romania525252
Rwanda1010
São Tomé & Príncipe
Senegal1818
Sierra Leone5656
Sri Lanka484848
Tajikistan66
Tanzania4040
Turkey12,8193,18116,00016,000
Ukraine291291291
Uruguay273273273
Vietnam4141
Yemen6969
Yugoslavia150150150
Zambia5050
Total12617,21995810,89129,19495230,146
Table II.8Repurchases and Repayments to the IMF, Financial Year Ended April 30, 2002(In millions of SDRs)
MemberStand-By/Credit TrancheExtended Fund FacilityCCFF and STFTotal RepurchasesSAF/PRGP and

Trust Fund Repayments
Total

Repurchases and Repayments
Albania44610
Algeria139139139
Argentina227565792792
Armenia66511
Azerbaijan93172929
Bangladesh12124254
Belarus232323
Benin1212
Bolivia2222
Bosnia/Herzegovina999
Brazil3,3853,3853,385
Bulgaria18151232232
Burkina Faso99
Burundi44
CambodiaI189
Cameroon
Central African Republic
Chad33
Congo, Democratic Rep, of the11
Congo, Republic of333
Côte d’Ivoire5353
Croatia5222727
Djibouti111
Dominican Republic555
Ecuador
Equatorial Guinea22
Estonia444
Ethiopia1212
Gabon999
Gambia, The
Georgia99817
Ghana4545
Guinea99
Guyana1414
Guinea Bissau11
Haiti222
Honduras66713
India
Indonesia1,6511,6511,651
Jamaica141414
Jordan444444
Kazakhstan
Kenya1515
Korea1,9241,9241,924
Kyrgyz Republic551015
Lao People’s Dem. Rep,66
Latvia888
Lesotho33
Lithuania2182929
Macedonia (FYR)1455
Madagascar
Malawi44
MaliIS13
Mauritania1111
Mexico
Moldova571212
Mongolia66
Mozambique1818
Nepal33
Nicaragua44
Niger11
Pakistan4024441 OS63171
Panama171717
Papua New Guinea111
Peru134134134
Philippines37488585
Romania60319191
Russia4732,5162,9892,989
Rwanda777
Senegal2424
Sierra Leone38382260
Slovak Republic
Sri Lanka5151
Sudan1872525
Tajikistan999
TanzaniaIS15
Thailand1,0751,0751,075
Togo8
Tunisia222222
Turkey5,7845,7845,784
Uganda2929
Ukraine20383286286
Uruguay141414
Uzbekistan11172828
Venezuela44246868
Vietnam443640
Yemen313131
Yugoslavia
Zambia166166
Zimbabwe11
Total14,8091,5302,86719,20777719,984
Table II.9Outstanding IMF Credit by Facility and Policy, Financial Years Ended April 30, 1994–2002(In millions of SDRs and percent of total)
199419951996199719981999200020012002
Millions of SDRs
Stand-By Arrangements19,48515,11720,70018,06425,52625,21321,41017,10128,612
Extended Arrangements9,56610,1559,98211,15512,52116,57416,80816,10815,538
Supplemental Reserve Facility7,10012,6554,0855,875
Compensatory and Contingency
Financing Facility3,7563,0211,6021,3366852,8453,0322,992745
Systemic Transformation Facility2,7253,8483,9843,9843,8693,3642,7181,9331,311
Subtotal (GRA)25,53232,14036,26834,53949,70160,65143,96842,21952,081
SAP Arrangements1,4401,2771,208954730565456432341
PRGF Arrangements22,8123,3184,4694,9045,5055,8705,8575,9516,188
Trust Fund10510298909089898989
Total29,88936,83742,04040,48856,02667,17550,37048,69158,699
Percent of total
Stand-By Arrangements1324149454638433549
Extended Arrangements322824282225333326
Supplemental Reserve Facility1319910
Compensatory and Contingency
Financing Facility1284314661
Systemic Transformation Facility91091075542
Subtotal (GRA)858786858990878788
SAF Arrangements5332111I1
PRGF Arrangements2991112109121211
Trust Fund333333333
Total100100100100100100100100100

Includes outstanding credit tranche and emergency purchases.

Includes outstanding associated loans from the Saudi Fund for Development.

Less than ½ of 1 percent total.

Includes outstanding credit tranche and emergency purchases.

Includes outstanding associated loans from the Saudi Fund for Development.

Less than ½ of 1 percent total.

Table II.10Summary of Bilateral Contributions to the PRGF and PRGF-HIPC Trusts(In millions of SDRs; as of April 30, 2002)
PRGF-HIPC TrustPRGF Trust
subsidies and HI PC grant contributions “as needed”1Subsidy contributions “as needed”2Loan commitments3
TOTAL1,559.13,496.115,676.8
Major industrial countries880.52,304.912,864.8
Canada48.8204.1700.0
France82.2479.92,900.0
Germany127.2197.92,750.0
Italy63.6162.11,380.0
Japan144.0723.85,134.8
United Kingdom82.2359.1
United States332.6178.0
Other advanced countries299.7984.72,456.4
Australia24.814.1
Austria14.363.6
Belgium35.3123.1350.0
Denmark18.567.0100.0
Finland8.042.1
Greece6.340.0
Iceland0.94.6
Ireland5.97.7
Israel1.8
Korea15.960.092.7
Luxembourg0.714.4
Netherlands45.4140.0450.0
New Zealand1.7
Norway18.545.5150.0
Portugal6.65.6
San Marino0.0
Singapore16.533.9
Spain423.327.0712.0
Sweden18.3186.6
Switzerland37.0109.3601.7
Fuel-exporting countries108.717.9
Algeria5.5
Bahrain0.9
Brunei Darussalam0.1
Gabon2.5
Iran, Islamic Republic of2.22.1
Kuwait3.1
Nigeria13.9
Oman0.8
Qatar0.5
Saudi Arabia53.515.7
Trinidad and Tobago1.6
United Arab Emirates3.8
Venezuela, República Bolivariana de20.4
Other developing countries227.1175.4355.6
Argentina16.235.0
Bangladesh1.70.9
Barbados0.4
Belize0.3
Botswana3.12.4
BrazilIS.O
Cambodia0.0
Chile4.44.0
China19.714.8200.0
Colombia0.9
Cyprus0.8
Dominican Republic0.5
Egypt1.313.3155.6
Fiji0.1
Ghana0.5
Grenada0.1
India22.913.6
Indonesia8.26.2
Jamaica2.7
Lebanon0.4
Libya7.3
Malaysia12.747.1
Maldives0.0
Malta1.12.2
Mauritius0.1
Mexico54.5
Micronesia, F. S,0.0
Morocco1.69.8
Pakistan3.44.1
Paraguay0.1
Peru2.5
Philippines6.7
Samoa0.0
South Africa28.6
Sri Lanka0.6
St. Lucia0.1
St. Vincent and the Grenadines0.1
Swaziland0.0
Thailand4.517.3
Tonga0.0
Tunisia1.51.9
Turkey11.4
Uruguay2.22.6
Vanuatu0.1
Vietnam0.4
Countries in transition42.913.3
Croatia0.4
Czech Republic4.113.3
Estonia0.5
Hungary6.0
Latvia1.0
Poland12.0
Russian Federation14.6
Slovak Republic4.0
Slovenia0.4

The term “as needed’ refers to the nominal undiscounted sum of the projected delivery of HIPC assistance plus the profile of projected subsidy needs for interim PRGF lending. All calculations are based on an SDR interest rate assumption of 5 percent per annum.

The calculations are based on actual interest rates through end-2001 and an assumed SDR interest rate of 5 percent per annum thereafter.

PRGF Trust also includes a loan commitment From the OPEC of US$50 million equivalent to SDR 37 million.

Loan commitments include Spain’s pledge of SDR 300 million.

The term “as needed’ refers to the nominal undiscounted sum of the projected delivery of HIPC assistance plus the profile of projected subsidy needs for interim PRGF lending. All calculations are based on an SDR interest rate assumption of 5 percent per annum.

The calculations are based on actual interest rates through end-2001 and an assumed SDR interest rate of 5 percent per annum thereafter.

PRGF Trust also includes a loan commitment From the OPEC of US$50 million equivalent to SDR 37 million.

Loan commitments include Spain’s pledge of SDR 300 million.

Table II.11Holdings of SDRs by Participants and by Groups of Countries as Percent of Their Cumulative Allocations of SDRs, at End of Financial Years Ended April 30, 1993–2002
Nonindustrial Countries2
Net debtor countries
All

Participants1
Industrial

Countries2
All nonindustrial

countries
Net creditor

countries
All net debtor

countries
Heavily indebted

poor countries
199363.073.141.6166.635.14.6
199471.077.956.3222.547.712.5
199590.9105.160.4263.949.814.1
199691.4102.467.9285.556.617.4
199787.299.860.5303.647.817.3
199895.0107.069.4323.756.124.1
199981.194.652.5170.746.326.3
200084.695.062.5174.156.620.6
200186.6101.654.6204.246.512.4
200291.5107.756.9227.944.714.6

Consists of member countries that are participants in the SDR Department. At the end of FY2002, of the total SDRs allocated to participants in the SDR Department (SDR 21.4 billion), SDR 1.9 billion was not held by participants but instead by the IMF and prescribed holders.

Based on IFS classification (International Monetary Fund, International Financial Statistics, various years).

Consists of member countries that are participants in the SDR Department. At the end of FY2002, of the total SDRs allocated to participants in the SDR Department (SDR 21.4 billion), SDR 1.9 billion was not held by participants but instead by the IMF and prescribed holders.

Based on IFS classification (International Monetary Fund, International Financial Statistics, various years).

Table II.12Key IMF Rates, Financial Year Ended April 30, 2002(In percent)
Period

Beginning
SDR Interest Rate

and Unadjusted Rate

of Remuneration1
Basic Rate

of Charge1
Period

Beginning
SDR Interest Rate

and Unadjusted Rate

of Remuneration1
Basic Rate

of Charge1
2001November 52.432.83
May 13.784.40November 122.262.63
May 73.724.33November 192.332.71
May 143.654.25November 262.332,71
May 213.584.17December 32.252.62
May 283.594.18December 102.222.58
June 43.564.14December 172,252.62
June 113.534.11December 242.242.61
June 183.494.06December 312.232.60
June 253.464.03
July 23.564.142002
July 93.564.14January 72.222.58
July 163.554.13January 142.182.54
July 233.524.10January 212.192.55
July 303.534.11January 282.252.62
August 63.484.05February 42.272.64
August 133.423.98February 112.252.62
August 203.373.92February 182.262.63
August 273.393.95February 252.272.64
September 33.343.89March 42.272.64
September 103.303.84March 112.292.67
September 172.923.40March 182.322.70
September 242.613.04March 252.332.71
October 12.673.11April 12.322.70
October 82,552.97April 82,302.68
October 152.603.03April 152.272.64
October 222.562.98April 222.272.64
October 292.522.93April 292.282.65

Under the FY2002 decision on burden sharing, the rate of charge was adjusted down ward and the rate of charge was adjusted upward to share the burden of protecting the IMF’s income from overdue charges and of contributing to the IMF’s precautionary balances. The amounts generated from burden sharing in FY2002 are refundable when overdue charges are paid and when overdue obligations cease to be a problem. The basic rate of charge presented is the effective rate following the retroactive reduction that was implemented after the end of the financial year. The basic rate of charge, which was set at 117.6 percent of the SDR interest rate, was reduced to 116.4 percent of the SDR interest rate as a result of the retroactive reduction.

Under the FY2002 decision on burden sharing, the rate of charge was adjusted down ward and the rate of charge was adjusted upward to share the burden of protecting the IMF’s income from overdue charges and of contributing to the IMF’s precautionary balances. The amounts generated from burden sharing in FY2002 are refundable when overdue charges are paid and when overdue obligations cease to be a problem. The basic rate of charge presented is the effective rate following the retroactive reduction that was implemented after the end of the financial year. The basic rate of charge, which was set at 117.6 percent of the SDR interest rate, was reduced to 116.4 percent of the SDR interest rate as a result of the retroactive reduction.

Table II.13Members That Have Accepted the Obligations of Articel VIII, Sections 2, 3, and 4 of the Articles of Agreement
MemberEffective Date

of Acceptance
MemberEffective Date

of Acceptance
AlgeriaSeptember I8, 1997GuyanaDecember 27, 1966
Antigua and BarbudaNovember 22, 1983HaitiDecember 22, 1953
ArgentinaMay 14, 1968HondurasJuly 1, 1950
ArmeniaMay 29, 1997HungaryJanuary 1, 1996
AustraliaJuly 1, 1965IcelandSeptember 19, 1983
AustriaAugust 1, 1962IndiaAugust 20, 1994
Bahamas, TheDecember 5, 1973IndonesiaMay 7, 1988
BahrainMarch 20, 1973IrelandFebruary 15, 1961
BangladeshApril 11, 1994IsraelSeptember 21, 1993
BarbadosNovember 3, 1993ItalyFebruary 15, 1961
BelarusNovember 5, 2001JamaicaFebruary 22, 1963
BelgiumFebruary 15, 1961JapanApril 1, 1964
BelizeJune 14, 1983JordanFebruary 20, 1995
BeninJune 1, 1996KazakhstanJuly 16, 1996
BoliviaJune 5, 1967KenyaJune 30, 1994
BotswanaNovember 17, 1995KiribatiAugust 22, 1986
BrazilNovember 30, 1999KoreaNovember 1, 1988
Brunei DarussalamOctober 10, 1995KuwaitApril 5, 1963
BulgariaSeptember 24, 1998Kyrgyz RepublicMarch 29, 1995
Burkina FasoJune 1, 1996LatviaJune 10, 1994
CambodiaJanuary 1, 2002LebanonJuly 1, 1993
CameroonJune 1, 1996LesothoMarch 5, 1997
CanadaMarch 25, 1952LithuaniaMay 3, 1994
Central African RepublicJune 1, 1996LuxembourgFebruary 15, 1961
ChadJune 1, 1996Macedonia, FYRJune 19, 1998
ChileJuly 27, 1977MadagascarSeptember 18, 1996
ChinaDecember 1, 1996MalawiDecember 7, 1995
ComorosJune 1, 1996MalaysiaNovember 11, 1968
Congo, Republic ofJune 1, 1996MaliJune 1, 1996
Costa RicaFebruary 1, 1965MaltaNovember 30, 1994
Côte d’IvoireJune 1, 1996Marshall IslandsMay 21, 1992
CroatiaMay 29, 1995MauritaniaJuly 19, 1999
CyprusJanuary 9, 1991MauritiusSeptember 29, 1993
Czech RepublicOctober 1, 1995MexicoNovember 12, 1946
DenmarkMay 1, 1967Micronesia, Federated States ofJune 24, 1993
DjiboutiSeptember 19, 1980MoldovaJune 30, 1995
DominicaDecember 13, 1979MongoliaFebruary 1, 1996
Dominican RepublicAugust 1, 1953MoroccoJanuary 21, 1993
EcuadorAugust 31, 1970NamibiaSeptember 20, 1996
El SalvadorNovember 6, 1946NepalMay 30, 1994
Equatorial GuineaJune 1, 1996NetherlandsFebruary 15, 1961
EstoniaAugust 15, 1994New ZealandAugust S, 1982
FijiAugust 4, 1972NicaraguaJuly 20, 1964
FinlandSeptember 25, 1979NigerJune 1, 1996
FranceFebruary 15, 1961NorwayMay 11, 1967
GabonJune 1, 1996OmanJune 19, 1974
Gambia, TheJanuary 21, 1993PakistanJuly 1, 1994
GeorgiaDecember 20, 1996PalauDecember 16, 1997
GermanyFebruary 15, 1961PanamaNovember 26, 1946
GhanaFebruary 21, 1994Papua New GuineaDecember 4, 1975
GreeceJuly 7, 1992ParaguayAugust 22, 1994
GrenadaJanuary 24, 1994PeruFebruary 15, 1961
GuatemalaJanuary 27, 1947PhilippinesSeptember 8, 1995
GuineaNovember 17, 1995PolandJune 1, 1995
Guinea-BissauJanuary 1, 1997PortugalSeptember 12, 1988
QatarJune 4, 1973SurinameJune 29, 1978
RomaniaMarch 25, 1998SwazilandDecember 11, 1989
Russian FederationJune 1, 1996SwedenFebruary 15, 1961
RwandaDecember 10, 1998SwitzerlandMay 29, 1992
St. Kitts and NevisDecember 3, 1984TanzaniaJuly 15, 1996
St. LuciaMay 30, 1980ThailandMay 4, 1990
St. Vincent and the GrenadinesAugust 24, 1981TogoJune 1, 1996
SamoaOctober 6, 1994TongaMarch 22, 1991
San MarinoSeptember 23, 1992Trinidad and TobagoDecember 13, 1993
Saudi ArabiaMarch 22, 1961TunisiaJanuary 6, 1993
SenegalJune 1, 1996TurkeyMarch 22, 1990
SeychellesJanuary 3, 1978UgandaApril 5, 1994
Sierra LeoneDecember 14, 1995UkraineSeptember 24, 1996
SingaporeNovember 9, 1968United Arab EmiratesFebruary 13, 1974
Slovak RepublicOctober 1, 1995United KingdomFebruary 15, 1961
SloveniaSeptember J, 1995United StatesDecember 10, 1946
Solomon IslandsJuly 24, 1979UruguayMay 2, 1980
South AfricaSeptember 15, 1973VanuatuDecember 1, 1982
SpainJuly 15, 1986Venezuela, República Bolivariana deJuly 1, 1976
Sri LankaMarch 15, 1994Yemen, Republic ofDecember 10, 1996
ZambiaApril 19, 2002
ZimbabweFebruary 3, 1995
Table II.14Exchange Rate Arrangement and Anchors of Monetary Policy as of December 31, 2001
Classification of Exchange Rate Regimes



The classification system, in effect since 1999, is based on the members’ actual, de facto, regimes that may differ from their officially announced arrangements. The scheme ranks exchange rate regimes on the basis of the degree of flexibility of the arrangement. It distinguishes between the more rigid forms of pegged regimes (such as currency board arrangements); other conventional fixed peg regimes against a single currency or a basket of currencies; exchange rate bands around a fixed peg; crawling peg arrangements; and exchange rate bands around crawling pegs, in order to help assess the implications of the choice of exchange rate regime for the degree of independence of monetary policy. This includes a care-gory to distinguish the exchange arrangements of those countries that have no separate legal tender. The system presents members’ exchange rate regimes against alternative monetary policy frame-works with the intention of using both criteria as a way of providing greater transparency in the classification scheme and to illustrate that different forms of exchange rate regimes could be consistent with similar monetary frameworks. The following explains the categories.



Exchange Rate Regimes



Exchange Arrangements With No Separate Legal Tender

The currency of another country circulates as the sole legal tender, or the member belongs to a monetary or currency union in which the same legal tender is shared by the members of the union. Adopting such regimes is a form of surrendering the monetary authorities’ independent control over domestic monetary policy.



Currency Board Arrangements



A monetary regime based on an explicit legislative commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate, combined with restrictions on the issuing authority to ensure the fulfillment of its legal obligation. This implies that domestic currency be issued only against foreign exchange and that it remain fully backed by foreign assets, eliminating traditional central bank functions such as monetary control and the lender of the last resort and leaving little scope for discretionary’ monetary policy; some flexibility may still be afforded depending on how strict the rules of the boards are established.



Other Conventional Fixed Peg Arrangements



The country pegs (formally or de facto) its currency at a fixed rate to a major currency or a basket of currencies, where a weighted composite is formed from the currencies of major trading or financial partners and currency weights reflect the geographical distribution of trade, services, or capital flows. In a conventional fixed peg arrangement, the exchange rate fluctuates within a narrow margin of less than ±1 percent around a formal or de facto central rate. The currency composites can also be standardized, such as those of the SDR and the ECU. The monetary authority stands ready to maintain the fixed parity through intervention, limiting the degree of monetary policy discretion; the degree of flexibility of monetary policy, however, is greater relative to CBAs or currency unions, in that traditional central banking functions arc, though limited, still possible, and the monetary authority can adjust the level of the exchange rate, though infrequently.

Pegged Exchange Rates Within Horizontal Bands

The value of the currency is maintained within certain margins of fluctuation of at least ±1 percent around a formal or a de facto fixed central rate. It also includes the arrangements of the countries in the exchange rate mechanism (ERM) of the European Monetary System (EMS) (replaced with ERM-II on January 1,1999). There is some limited degree of monetary policy discretion, with the degree of discretion depending on the band width.

Crawling Pegs

The currency is adjusted periodically in small amounts at a fixed rate or in response to changes in selective quantitative indicators (past inflation differentials vis-à-vis major trading partners, differentials between the target inflation and expected inflation in major trading
partners, etc). The rate of crawl can be set to generate inflation adjusted changes in the currency (“backward looking”), or at a pre-announced fixed rate below the projected inflation differentials (“forward looking”). Maintaining a credible crawling peg imposes constraints on monetary policy in a similar manner as a fixed peg system.

Exchange Rates Within Crawling Bands

The currency is maintained within certain fluctuation margins of at least ±1 percent around a central rate, which is adjusted periodically at a fixed rate, or in response to changes in selective quantitative indicators. The degree of flexibility of the exchange rate is a function of the width of the band, with bands chosen to be either symmetric around a crawling central parity or to widen gradually with an asymmetric choice of the crawl of upper and lower bands (in the latter case, there is no preannouncement of a central rate). The commitment to maintain the exchange rate within the band continues to impose constraints on monetary policy, with the degree of policy independence being as a (unction of the band width.

Managed Floating With No Predetermined Path for the Exchange Rate

The monetary authority influences the movements of the exchange rate through active intervention in the foreign exchange market without specifying, or precommitting to, a regular preannounced path for the exchange rate. Indicators for managing the rate are broadly judgmental, including, for example, the balance of payments position, international reserves, parallel market developments, and the adjustments may not be automatic.

Independent Floating

The exchange rate is market determined, with any foreign exchange intervention aimed at moderating the rate of change and preventing undue fluctuations in the exchange rate, rather than at establishing a level for it. In these regimes, monetary policy is in principle independent of exchange rate policy.

Monetary Policy Framework

Members’ exchange rate regimes arc presented against alternative monetary policy frameworks in order to present the role of the exchange rate in broad economic policy and help identify potential sources of inconsistency in the monetary-exchange rate policy mix.

Exchange Rate Anchor

The monetary authority stands ready to buy/sell foreign exchange at given quoted rates to maintain the exchange rate at its preannounced level or range (the exchange rate serves as the nominal anchor or intermediate target of monetary policy). These regimes cover exchange rate regimes with no separate legal tender, CBA s, fixed pegs with and without bands, and crawling pegs with and without bands, where the rate of crawl is set in a forward-looking manner.

Monetary Aggregate Anchor

The monetary authority uses its instruments to achieve a target growth rate for a monetary aggregate (reserve money, Ml, M2, etc.) and the targeted aggregate becomes the nominal anchor or intermediate target of monetary policy.

Inflation Targeting Framework

Involves the public announcement of medium-term numerical targets for inflation with an institutional commitment by the monetary’ authority to achieve these targets. Additional key features include increased communication with the public and the markets about the plans and objectives of monetary policymakers and increased accountability of the central bank for obtaining its inflation objectives. Monetary policy decisions are guided by the deviation of forecasts of future inflation from the announced inflation target, with

the inflation forecast acting (implicitly or explicitly) as the intermediate target of monetary policy.

IMF-Supported or Other Monetary Program

Involves implementation of monetary and exchange rate policy within the confines of a framework that establishes floors for interna
tional reserves and ceilings for net domestic assets of the central bank. As the ceiling on net domestic assets limits increases Sit reserve money through central bank operations, indicative targets for reserve money may be appended to this system.Other

The country has no explicitly stated nominal anchor, but rather monitors various indicators in conducting monetary policy, or there is no relevant information available for the country’.
Monetary Policy Framework1,2
Exchange Rate Regime (number of countries)Exchange rate anchorMonetary aggregate targetInflation -targeting frameworkIMF-supported or other monetary programOther
Exchange

arrangements

with no separate

legal tender (40)
Another

currency as

legal tender
Euro area4,5
CFA franc zoneAustria
ECCP3WAEMUCAEMCBelgium
Ecuador†Antigua andBenin†Cameroon†Finland
El Salvador13BarbudaBurkina Faso†Central African

Rep.†
France
KiribatiDominicaCôte d’Ivoire†Germany
Marshall

Islands
GrenadaGuinea-Bissau†Chad†Greece
St. Kitts and NevisMali†Congo, Rep. of†Ireland
MicronesiaNiger†Equatorial GuineaItaly
PalauSt. LuciaSenegal†Luxembourg
PanamaSt. Vincent and the GrenadineTogoGabon†Netherlands
San MarinoPanama
Spain
Currency board

arrangements (8)
Argentina†
Bosnia and Herzegovina†
Brunei Darussalam
Bulgaria †
China: Hong Kong, SAR
Djibouti†
Estonia
Lithuania†
Other conventional

fixed peg

arrangements

(including de facto

peg arrangements

under managed

floating) (41)
Against a single currency (31)Against a composite (10)China, People’s Rep. of*7
ArubaBotswana6
Bahamas, The6Fiji
BahrainKuwait
BangladeshLatvia†
BarbadosLibyan A.J.
BelizeMalta
BhutanMorocco
Cape VerdeSamoa
China, People’s Rep. of*7Seychelles
Comoros9Vanuatu
Eritca
Iran, Islamic Rep. of6,7
Jordan†7
Lebanon7
Lesotho†
Macedonia, FYR†7
Malaysia
Maldives7
Namibia
Nepal
Netherlands Antilles
Oman
Qatar7,8
Saudi Arabia7,8
Sudan7
Suriname6,7
Swaziland
Syrian Arab Republic6
Turkmenistan7
United Arab Emirates7,8
Zimbabwe7
Pegged exchange

rates within

horizontal

bands (5)10
Within a Cooperative
arrangementOther bandHungary*
ERM II (1)arrangements (4)
DenmarkCyprusHungary*
Egypt6Tonga
Crawling pegs (4)Bolivia†
Costa Rica7
Nicaragua†
Solomon Islands6
Exchange rates

within crawling

bands (6)11
BelarusRomania7Israel*
Honduras†Uruguay
Israel*Venezuela, Rep. Bol. de
Managed floating

with no pre-

announced path

for exchange

rate (42)
Ghana†Thailand†AzerbaijanAlgeria4
Guinea†Cambodia6Angola4
Guyana†CroatiaBurundi4
Indonesia†EthiopiaDominican Rep4,6
Jamaica7KazakhstanGuatemala4
MauritiusKenyaIndia4
Mongolia†Kyrgyz RepublicIraq12
São Tomé and Príncipe†Lao PDR6Myanmar6,7
MauritaniaParaguay4
SloveniaNigeriaSingapore4
Sri Lanka†PakistanSlovak Rep4
TunisiaRussian FederationUzbekistan4,6
Rwanda
Trinidad & Tobago
Ukraine
Vietnam
Yugoslavia
Zambia
Independently

floating (40)
Gambia, The†AustraliaAlbaniaAfghanistan6,12
Malawi†Brazil†ArmeniaHaiti4
Peru†CanadaCongo, Dem.Japan4
Philippines†Chile6Rep.Liberia4
Sierra Leone†Colombia†GeorgiaPapua New
Turkey†Czech Rep.MadagascarGuinea4
Yemen†IcelandMoldovaSomalia6,12
KoreaMozambiqueSwitzerland4
MexicoTajikistanUnited States4
New ZealandTanzania
NorwayUganda
Poland
South Africa
Sweden
United Kingdom
Sources: IMF Staff Reports and International Financial Statistics.Note: The term “country”, as used in this publication, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; The term also covers some territorial entities that are not states but for which statistical data are maintained and provided internationally on a separate and independent basis.

A country with* indicates that the country has more than one nominal anchor that may guide monetary policy. It should be noted, however that it would not be possible, for practical purposes, to infer from this table which nominal anchor pays the principal role in conducting monetary policy.

A country with* indicates that the country has an IMF-supported or other monetary program.

These countries have a currency board arrangement.

The country has no explicitly stated nominal anchor, but rather monitors various indicators in conducting monetary policy.

Until withdrawn in February 2002, national anchor, but rather monitors various indicators in conducting monetary policy.

Member maintained exchange regimes involving more than one market. The regime shown is that maintained in the major market.

The indicated country has a de facto regime, which differs from its de jure regime.

Exchange rates are determined on the basis of a fixed relationship to the SDR, within margins of up to 7.25%

Comoros has the same arrangement with the French Treasury as do the CFA Franc Zone countries.

The band width for these countries is: Cyprus(±2.25%), Denmark (±2.25%), Egypt (±3%), Hungary (±15%) and Tonga (±5%).

The band for these countries is: Belarus(±5%), Honduras (±7%), Isreal (±22%), Romania (unannounced), Uruguay (±3%) and Venezuela (±7.5%).

There is no relevant information available for the country.

For El Salvador, the printing of new colones, the domestic currency, is prohibited, but the existing stock of colones will continue to circulate, along with the U.S dollar, as legal tender until all notes physically wear out.

Sources: IMF Staff Reports and International Financial Statistics.Note: The term “country”, as used in this publication, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; The term also covers some territorial entities that are not states but for which statistical data are maintained and provided internationally on a separate and independent basis.

A country with* indicates that the country has more than one nominal anchor that may guide monetary policy. It should be noted, however that it would not be possible, for practical purposes, to infer from this table which nominal anchor pays the principal role in conducting monetary policy.

A country with* indicates that the country has an IMF-supported or other monetary program.

These countries have a currency board arrangement.

The country has no explicitly stated nominal anchor, but rather monitors various indicators in conducting monetary policy.

Until withdrawn in February 2002, national anchor, but rather monitors various indicators in conducting monetary policy.

Member maintained exchange regimes involving more than one market. The regime shown is that maintained in the major market.

The indicated country has a de facto regime, which differs from its de jure regime.

Exchange rates are determined on the basis of a fixed relationship to the SDR, within margins of up to 7.25%

Comoros has the same arrangement with the French Treasury as do the CFA Franc Zone countries.

The band width for these countries is: Cyprus(±2.25%), Denmark (±2.25%), Egypt (±3%), Hungary (±15%) and Tonga (±5%).

The band for these countries is: Belarus(±5%), Honduras (±7%), Isreal (±22%), Romania (unannounced), Uruguay (±3%) and Venezuela (±7.5%).

There is no relevant information available for the country.

For El Salvador, the printing of new colones, the domestic currency, is prohibited, but the existing stock of colones will continue to circulate, along with the U.S dollar, as legal tender until all notes physically wear out.

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