Back Matter

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2002
    Share
    • ShareShare
    Show Summary Details
    Appendix I: Exchange Rate Arrangements and Anchors of Monetary Policy1, 2
    Exchange RateMonetary Policy Framework
    Regime
    MonetaryInflationIMF-supported or
    (Number ofaggregatetargetingother monetary
    countries)Exchange rate anchortargetframeworkprogramOther
    ExchangeAnotherEuro area4,5
    arrangementscurrency asCFA franc zoneAustria
    with no separatelegal tenderECCU3WAEMUCAEMCBelgium
    legal tender (40)Ecuador*Antigua andBenin*Cameroon*Finland
    El Salvador6BarbudaBurkinaCentralFrance
    KiribatiDominicaFaso*AfricanGermany
    Marshall islandsGrenadaCôteRep.*Greece
    Micronesia, Fed.St. Kitts andd’Ivoire*Chad*Ireland
    States ofNevisGuinea-Congo,Italy
    PalauSt. LuciaBissau*Rep. of*Luxembourg
    PanamaSt. VincentMali*EquatorialNetherlands
    San Marinoand theNiger*GuineaPortugal
    GrenadinesSenegal*Gabon*Spain
    Togo
    Currency boardArgentina*
    arrangements (8)Bosnia and Herzegovina*
    Brunei Darussalam
    Bulgaria*
    China—Hong Kong SAR
    Djibouti*
    Estonia*
    Lithuania*
    OtherAgainst a single currency (31)Against a composite (10)Chinat†8
    conventional fixedArubaBotswana7
    peg arrangementsBahamas, The7Fiji
    (including deBahrain. Kingdom ofKuwait
    facto pegBangladeshLatvia*
    arrangementsBarbadosLibya
    under managedBelizeMalta
    floating) (41)BhutanMorocco
    Cape VerdeSamoa
    China†8Seychelles
    Comoros9Vanuatu
    Eritrea
    Eritrea Iran, I.R. of78
    Jordan†8
    Lebanon8
    Lesotho*
    Macedonia, FYR*8
    Malaysia
    Maldives8
    Namibia
    Nepal
    Netherlands Antilles
    Oman
    Qatar8, 10
    Saudi Arabia8, 10
    Sudan8
    Suriname7, 8
    Swaziland
    Syrian Arab Rep.7
    Turkmenistan8
    United Arab Emirates8, 10
    Zimbabwe8
    Pegged exchangeWithin a cooperativeOther bandHungary†
    rates withinarrangement ERM 11 (1)arrangements (4)
    horizontalDenmarkCyprus
    bands (5)11Egypt7
    Hungary†
    Tonga
    Crawling pegs (4)Bolivia*
    Costa Rica8
    Nicaragua*
    Solomon Islands8
    Source: IMF staff reports

    Data are accurate as of December 31, 2001. The following countries were reclassified subsequent to that date: Argentina, the Islamic Republic of Iran, São Tomé and Principe, Sudan, and Repùblica Bolivariana de Venezuela.

    An asterisk (*) indicates that the country has an IMF–supported or other monetary program. A dagger (+) indicates that the country adopts more than one nominal anchor in conducting monetary policy (it should be noted, however, that it would not be possible, for practical reasons, to infer from this table which nominal anchor plays the principal role in conducting monetary policy).

    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 they are withdrawn in the first quarter of 2002, national currencies will retain their status as legal tender within their national territories.

    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 col6n notes wear out physically.

    Member maintains an exchange arrangement involving more than one market. The arrangement shown is that maintained in the major market.

    The regime operating de facto in the country is different from its de jure regime.

    Comoros has the same arrangement with the French Treasury as the CFA franc zone countries do.

    Exchange rates are determined on the basis of a fixed relationship to the SDR, within margins of up to ±7.25%. However, because of the maintenance of a relatively stable relationship with the U.S. dollar, these margins are not always observed.

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

    The band width for these countries is Belarus (±5%), Honduras (±7%), Israel (±22%), Romania (unannounced), Uruguay (±3%), and Republica Bolivariana de Venezuela (±7.5%).

    Insufficient information on the country is available for classification.

    Exchange RateMonetary Policy Framework
    RegimeMonetaryInflationIMF-supported or
    (Number ofaggregatetargetingother monetary
    countries)Exchange rate anchortargetframeworkprogramOther
    Exchange ratesBelarusRomania*8Israel†
    within crawlingHonduras*Uruguay*
    bands (6)12Israel†Venezuela, Rep Bolivariana de
    Managed floatingGhana*Thailand*AzerbaijanAlgeria4
    with no pre-Guinea*Cambodia7Angola4
    announced pathGuyana*CroatiaBurundi4
    for exchange rateIndonesia*EthiopiaDominican Rep.4,7
    (42)Jamaica*8KazakhstanGuatemala4
    MauritiusKenyaIndia4
    Mongolia*Kyrgyz Rep.Iraq13
    São Tomé andLao PDR7Myanmar4,78
    Príncipe*MauritaniaParaguay4
    SloveniaNigeriaSingapore4
    Sri Lanka*PakistanSlovak Rep.4
    TunisiaRussian FederationUzbekistan4,7
    Rwanda
    Trinidad and
    Tobago
    Ukraine
    Vietnam
    Yugoslavia, Fed,
    Rep. of
    Zambia
    IndependentlyGambia, The*AustraliaAlbaniaAfghanistan,
    floating (40)Malawi*Brazil*ArmeniaI.S. of 7,13 Haiti4
    Peru*CanadaCongo, DemHaiti4
    Philippines*Chile7Rep. ofJapan4
    SierraColombia*GeorgiaLiberia4
    Leone*Czech Rep.MadagascarPapua New Guinea4
    Turkey*IcelandMoldovaSomalia713
    Yemen,KoreaMozambiqueSwitzerland4
    Rep. of*MexicoTajikistanUnited States4
    NewTanzania
    ZealandUganda
    Norway
    Poland
    South Africa
    Sweden
    United
    Kingdom
    Source: IMF staff reports

    Data are accurate as of December 31, 2001. The following countries were reclassified subsequent to that date: Argentina, the Islamic Republic of Iran, São Tomé and Principe, Sudan, and Repùblica Bolivariana de Venezuela.

    An asterisk (*) indicates that the country has an IMF–supported or other monetary program. A dagger (+) indicates that the country adopts more than one nominal anchor in conducting monetary policy (it should be noted, however, that it would not be possible, for practical reasons, to infer from this table which nominal anchor plays the principal role in conducting monetary policy).

    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 they are withdrawn in the first quarter of 2002, national currencies will retain their status as legal tender within their national territories.

    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 col6n notes wear out physically.

    Member maintains an exchange arrangement involving more than one market. The arrangement shown is that maintained in the major market.

    The regime operating de facto in the country is different from its de jure regime.

    Comoros has the same arrangement with the French Treasury as the CFA franc zone countries do.

    Exchange rates are determined on the basis of a fixed relationship to the SDR, within margins of up to ±7.25%. However, because of the maintenance of a relatively stable relationship with the U.S. dollar, these margins are not always observed.

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

    The band width for these countries is Belarus (±5%), Honduras (±7%), Israel (±22%), Romania (unannounced), Uruguay (±3%), and Republica Bolivariana de Venezuela (±7.5%).

    Insufficient information on the country is available for classification.

    Classification of Exchange Rate Arrangements and Monetary Policy Frameworks

    The classification system 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 category 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 frameworks 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 categories are explained in the compilation guide.

    Members’ exchange rate regimes are 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. The monetary policy frameworks listed are as follows.

    Exchange rate anchor

    The monetary authority stands ready to buy or 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, currency board arrangements, fixed pegs with or without bands, and crawling pegs with or without bands, where the rate of crawl is set in a forward-looking manner.

    Monetary aggregate target

    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 international reserves and ceilings for net domestic assets of the central bank. As the ceiling on net domestic assets limits increases in 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. This is also used when no relevant information on the country is available.

    Appendix II: Summary Features of Exchange Arrangements and Regulatory Frameworks for Current and Capital Transactions in Member Countries 1 (As of date shown on first country page)2
    Total number of countries with this featureAfghanistan, I.S. ofAlbaniaAlgeriaAngolaAntigua and BarbudaArgentinaArmeniaArubaAustraliaAustriaAzerbaijanThe BahamasBahrain, Kingdom ofBangladeshBarbadosBelarusBelgiumBelizeBeninBhutanBoliviaBosnia and HerzegovinaBotswanaBrazilBrunei DarussalamBulgariaBurkina FasoBurundiCambodiaCameroonCanadaCape VerdeCentral African RepublicChadChileChina, People’s Rep. ofHong Kong SARColombiaComorosCongo, Dem. Rep. of theCongo, Republic ofCosta RicaCôte d’lvoireCroatiaCyprusCzech RepublicDenmarkDjiboutiDominicaDominican RepublicEcuadorEgyptEl SalvadorEquatorial GuineaEritreaEstoniaEthiopia
    Status under IMF Articles of Agreement
    Article VIII156
    Article XIV30
    Exchange rate arrangements
    Exchange arrangement with no separate legal tender40
    Currency board arrangement7
    Conventional pegged arrangement39+++++++++++
    Pegged exchange rate within horizontal bands5**
    Crawling peg4
    Crawling band5
    Managed floating with no preannounced path for the exchange rate44
    Independently floating42
    Exchange rate structure
    Dual exchange rates10
    Multiple exchange rates6
    Arrangements for payments and receipts
    Bilateral payments arrangements65
    Payments arrears62
    Controls on payments for invisible transactions and current transfers101
    Controls on proceeds from exports and/or invisible transactions
    Repatriation requirements104
    Surrender requirements79
    Capital transactions Controls on:
    Capital market securities131
    Money market instrument110
    Collective investment securities101
    Derivatives and other instrument83
    Commercial credits107
    Financial credits113
    Guarantees, sureties, and financial backup facilities96
    Direct investments147
    Liquidation of direct investments59
    Real estate transactions135
    Personal capital transactions91
    Provisions specific to:
    Commercial banks and other credit institutions157
    Institutional investors86
    FijiFinlandFranceGabonThe GambiaGeorgiaGermanyGhanaGreeceGrenadaGuatemalaGuineaGuinea-BissauGuyanaHaitiHondurasHungaryIcelandIndiaIndonesiaIran, I.R. ofIraqIrelandIsraelItaly
    Status under IMF Articles of Agreement
    Article VIII
    Article XIV
    Exchange rate arrangements
    Exchange arrangement with no separate legal tender
    Currency board arrangement
    Conventional pegged arrangement
    Pegged exchange rate within horizontal bands*
    Crawling peg
    Crawling band
    Managed floating with no preannounced path for the exchange rate
    Independently floating
    Exchange rate structure
    Dual exchange rates
    Multiple exchange rates
    Arrangements for payments and receipts
    Bilateral payments arrangements
    Payments arrears
    Controls on payments for invisible transactions and current transfers
    Controls on proceeds from exports and/or invisible transactions
    Repatriation requirements
    Surrender requirements
    Capital transactions Controls on:
    Capital market securities
    Money market instruments
    Collective investment securities
    Derivatives and other instruments
    Commercial credits
    Financial credit
    Guarantees, sureties, and financial backup facilities
    Direct investments
    Liquidation of direct investments
    Real estate transaction
    Personal capital transactions
    Provisions specific to:
    Commercial banks and other credit institutions
    Institutional investors
    NepalNetherlandsNetherlands AntillesNew ZealandNicaraguaNigerNigeriaNorwayOmanPakistanPalauPanamaPapua New GuineaParaguayPeruPhilippinesPolandPortugalQatarRomaniaRussian FederationRwandaSt. Kitts and NevisSt. LuciaSt. Vincent and the GrenadinesSamoaSan MarinoSãn Tomé and PrincipeSaudi ArabiaSenegalSeychellesSierra LeoneSingaporeSlovak RepublicSloveniaSolomon IslandsSomaliaSouth AfricaSpainSri LankaSudanSurinameSwazilandSwedenSwitzerlandSyrian Arab RepublicTajikistanTanzaniaThailandTogoTongaTrinidad and TobagoTunisiaTurkeyTurkmenistanUgandaUkraineUnited Arab EmiratesUnited KingdomUnited StatesUruguayUzbekistanVanuatuVenezuela, Rep. Bolivariana ofVietnamYemen, Republic ofYugoslavia, Fed. Rep. OfZambiaZimbabwe
    Status under IMF Articles of Agreement
    Article VIII
    Article XIV
    Exchange rate arrangements
    Exchange arrangement with no separate legal tender
    Currency board arrangement
    Conventional pegged arrangement+++++++++++
    Pegged exchange rate within horizontal bands:
    Crawling peg
    Crawling band
    Managed floating with no preannounced path for the exchange rate
    Independently floating
    Exchange rate structure
    Dual exchange rates
    Multiple exchange rates
    Arrangements for payments and receipts
    Bilateral payments arrangements
    Payments arrears
    Controls on payments for invisible transactions and current transfer
    Controls on proceeds from exports and/or invisible transactions
    Repatriation requirements
    Surrender requirements
    Capital transactions Controls on:
    Capital market securities
    Money market instruments
    Collective investment securities
    Derivatives and other instruments
    Commercial credits
    Financial credits
    Guarantees, sureties, and financial backup facilities
    Direct investments
    Liquidation of direct investments
    Real estate transactions
    Personal capital transactions
    Provisions specific to:
    Commercial banks and other credit institutions
    Institutional investors
    • Indicates that the specified practice is a feature of the exchange system.— Indicates that data were not available at time of publication.▄ Indicates that the specific practice is not regulated.♦ Indicates that member uses the currency of another member as legal tender.⋄ Indicates that member participates in the ECCU.▴ Indicates that the arrangement was pegged to the French franc through December 31, 2001.⊕ Indicates that member participates in the euro area.+ Indicates that flexibility is limited to a single currency.▾ Indicates that the composite is a basket of other currencies.∔ Indicates that the country participates in the ERM II of the EMS.* Indicates other band arrangements.

    Usually December 31, 2001.

    The listing includes Hong Kong SAR, Aruba, and the Netherlands Antilles.

    APPENDIX III: COUNTRY TABLE MATRIX
    Status Under IMF Articles of Agreement
    Article VIII
    Article XIV
    Exchange Arrangement
    Currency
    Other legal tender
    Exchange rate structure
    Unitary
    Dual
    Multiple
    Classification
    Exchange arrangement with no separate legal tender
    Currency board arrangement
    Conventional pegged arrangement
    Pegged exchange rate within horizontal bands
    Crawling peg
    Crawling band
    Managed floating with no pre–announced path for the exchange rate
    Independently floating
    Exchange tax
    Exchange subsidy
    Forward exchange market
    Official cover of forward operations
    Arrangements for Payments and Receipts
    Prescription of currency requirements
    Controls on the use of domestic currency
    For current transactions and payments
    For capital transactions
    Transactions in capital and money market instruments
    Transactions in derivatives and other instruments
    Credit operations
    Use of foreign exchange among residents
    Payments arrangements
    Bilateral payments arrangements
    Operative
    Inoperative
    Regional arrangements
    Clearing agreements
    Barter agreements and open accounts
    Administration of control
    International security restrictions
    Inaccordance with IMF Executive Board Decision No. 144–(52/51)
    In accordance with UN sanctions
    Payments arrears
    Official
    Private
    Controls on trade in gold (coins and/or bullion)
    Controls on domestic ownership and/or trade
    Controls on external trade
    Controls on exports and imports of banknotes
    On exports
    Domestic currency
    Foreign currency
    On imports
    Domestic currency
    Foreign currency
    Resident Accounts
    Foreign exchange accounts permitted
    Held domestically
    Approval required
    Held abroad
    Approval required
    Accounts in domestic currency held abroad
    Accounts in domestic currency convertible into foreign currency
    Nonresident Accounts
    Foreign exchange accounts permitted
    Approval required
    Domestic currency accounts
    Convertible into foreign currency
    Approval required
    Blocked accounts
    Imports and Import Payments
    Foreign exchange budget
    Financing requirements for imports
    Minimum financing requirements
    Advance payment requirements
    Advance import deposits
    Documentation requirements for release of foreign exchange for imports
    Domiciliation requirements
    Preshipmerit inspection
    Letters of credit
    Import licenses used as exchange licenses
    Other
    Import licenses and other nontariff measures
    Positive list
    Negative list
    Open general licenses
    Licenses with quotas
    Other nontariff measures
    Import taxes and/or tariffs
    Taxes collected through the exchange system
    State import monopoly
    Exports and Export Proceeds
    Repatriation requirements
    Surrender requirements
    Financing requirements
    Documentation requirements
    Letters of credit
    Guarantees
    Domiciliation
    Preshipment inspection
    Other
    Exportlicenses
    Without quotas
    With quotas
    Export taxes
    Taxes collected through the exchange system
    Other export taxes
    Payments for Invisible Transactions and Current Transfers
    Controls on these transfers
    Trade–related payments
    Prior approval
    Quantitative limits
    Indicative iimits/bona fide test
    Investment–related payments
    Prior approval
    Quantitative limits
    Indicative limits/bona fide test
    Payments for travel
    Prior approval
    Quantitative limits
    Indicative Iimits/bona fide test
    Personal payments
    Prior approval
    Quantitative limits
    Indicative Iimits/bona fide test
    Foreign workers’ wages
    Prior approval
    Quantitative limits
    Indicative Iimits/bona fide test
    Credit card use abroad
    Prior approval
    Quantitative limits
    Indicative Iimits/bona fide test
    Other payments
    Prior approval
    Quantitative limits
    Indicative limits/bona fide test
    Proceeds from Invisible Transactions and Current Transfers
    Repatriation requirements
    Surrender requirements
    Restrictions on use of funds
    Capital Transactions
    Controls on capital transactions
    Controls on capita! and money market instruments
    On capital market securities
    Shares or other securities of a participating nature
    Purchase locally by nonresidents
    Sale or issue locally by nonresidents
    Purchase abroad by residents
    Sale or issue abroad by residents
    Bonds or other debt securities
    Purchase locally by nonresidents
    Sale or issue locally by nonresidents
    Purchase abroad by residents
    Sale or issue abroad by residents
    On money market instruments
    Purchase locally by nonresidents
    Sale or issue locally by nonresidents
    Purchase abroad by residents
    Sale or issue abroad by residents
    On collective investment securities
    Purchase locally by nonresidents
    Sale or issue locally by nonresidents
    Purchase abroad by residents
    Sale or issue abroad by residents
    Controls on derivatives and other instruments
    Purchase locally by nonresidents
    Sale or issue locally by nonresidents
    Purchase abroad by residents
    Sale or issue abroad by residents
    Controls on credit operations
    Commercial credits
    By residents to nonresidents
    To residents from nonresidents
    Financial credits
    By residents to nonresidents
    To residents from nonresidents
    Guarantees, sureties, and financial backup facilities
    By residents to nonresidents
    To residents from nonresidents
    Controls on direct investment
    Outward direct investment
    Inward direct investment
    Controls on liquidation of direct investment
    Controls on real estate transactions
    Purchase abroad by residents
    Purchase locally by nonresidents
    Sale locally by nonresidents
    Controls on personal capital transactions
    Loans
    By residents to nonresidents
    To residents from nonresidents
    Gifts, endowments, inheritances, and legacies
    By residents to nonresidents
    To residents from nonresidents
    Settlement of debts abroad by immigrants
    Transfer of assets
    Transfer abroad by emigrants
    Transfer into the country by immigrants
    Transfer of gambling and prize earnings
    Provisions specific to commercial banks and other credit institutions
    Borrowing abroad
    Maintenance of accounts abroad
    Lending to nonresidents (financial or commercial credits)
    Lending locally in foreign exchange
    Purchase of locally issued securities denominated in foreign exchange
    Differentiat treatment of deposit accounts in foreign exchange
    Reserve requirements
    Liquid asset requirements
    Interest rate controls
    Credit controls
    Differential treatment of deposit accounts held by nonresidents
    Reserve requirements
    Liquid asset requirements
    Interest rate controls
    Credit controls
    Investment regulations
    Abroad by banks
    In banks by nonresidents
    Open foreign exchange position limits
    On resident assets and liabilities
    On nonresident assets and liabilities
    Provisions specific to institutional investors
    Limits (max.) on securities issued by nonresidents
    Limits (max.) on investment portfolio held abroad
    Limits (min.) on investment portfolio held locally
    Currency–matching regulations on assets/liabilitiescomposition
    Other controls imposed by securities laws
    Changes During 2000
    Status under IMF Articles of Agreement
    Exchange arrangement
    Arrangements for payments and receipts
    Resident accounts
    Nonresident accounts
    imports and import payments
    Exports and export proceeds
    Payments for invisible transactions and current transfers
    Proceeds from invisible transactions and current transfers
    Capital transactions
    Controls on capital and money market instruments
    Controls on derivatives and other instruments
    Controls on credit operations
    Controls on direct investment
    Controls on liquidation of direct investment
    Controls on real estate transactions
    Controls on personal capital transactions
    Provisions specific to commercial banks and other credit institutions
    Provisions specific to institutional investors
    Other controls imposed by securities laws
    Changes During 2001
    Status under IMF Articles of Agreement
    Exchange arrangement
    Arrangements for payments and receipts
    Resident accounts
    Nonresident accounts
    Imports and import payments
    Exports and export proceeds
    Payments for invisible transactions and current transfers
    Proceeds from invisible transactions and current transfers
    Capital transactions
    Controls on capital and money market instruments
    Controls on derivatives and other instruments
    Controls on credit operations
    Controls on direct investment
    Controls on liquidation of direct investment
    Controls on real estate transactions
    Controls on persona) capital transactions
    Provisions specific to commercial banks and other credit institutions
    Provisions specific to institutional investors
    Other controls imposed by securities laws

      Other Resources Citing This Publication