Monetary and Financial Statistics Manual

Back Matter

Back Matter

Author(s):
International Monetary Fund. Statistics Dept.
Published Date:
September 2000
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    Monetary and Financial Statistics Manual Index

    Numbers in references refer to paragraphs

    • Accounts receivable/payable, 179

    • Accounting rules, 182

    • Accrual accounting, 227-239

    • Accumulation accounts, 406, 417,

    • Agents, 101

    • Aggregation, 183, 186, 240-241

    • Amanah deposits, 485, 489

    • Amortized basis securities, 135

    • Ancillary corporations, 71

    • Articles of Agreement, 467

    • Assuming debt, 211

    • ATS. See Automatic transfer service

    • Automatic transfer service, 294

    • Bad debts, 194

    • Balance of Payments Manual, 46

    • Balance sheets, 406, 414, 418, 424-425

    • Balancing items, 413

    • Bankers’ acceptances, 138, 310

    • BML. See Broad-money liabilities

    • Bonds, 230

    • Book values, 205-207, 213-214

    • Borrowing, net, 428, 450

    • Borrowing sectors, 343

    • Broad money

      • characteristics, 300

      • dimensions of, 285

      • liabilities, 92-93, 373-375

      • money holders, 316-320

      • money issuers, 321-324

      • types of financial assets, 286-315

    • Brokers, 101

    • Business debt, 355

    • Call options, 258

    • Capital accounts, 407, 417, 426-428

    • Captions, 259

    • Captive finance companies, 100

    • Cashier’s checks, 297

    • Catastrophic losses, 194

    • CBS. See Central Bank Survey

    • Center of economic interest, 51, 54-61

    • Central bank float, 389, 399

    • Central Bank Survey, 244, 365, 368, 393-394, 398, 403

    • Central bank, 86-91, 363

      • credit, 345

      • float, 399

    • Central government

      • credit, 345-346

      • deposit holdings, 319-320

    • Certificates of deposit, 310

    • Checks, 306

    • Classification

      • of financial assets, 120-179, 194

      • of institutional units into sectors, 80-81

      • of loans, 139-141

      • of trusts, 102-105

    • Commercial paper, 310

    • Compulsory savings deposits, 307

    • Conglomerates, 68-69

    • Consolidation, 242-244

      • of data, 183, 187

      • definition, 242

    • Consolidation adjustment, 401

    • Consumer debt, 353

    • Consumption of fixed capital, 413, 427

    • Contingencies, 180-181, 254, 336

    • Corporations, 66-72

      • ancillary, 71

      • characteristics of, 66

      • with characteristics of nonprofit institutions, 78

      • conglomerates, 68-69

      • control over other corporations, 67

      • depository, 85

      • financial, 72

      • holding, 70

      • multinational, 69

      • quasi-corporations, 73

      • special purpose vehicles, 72

      • subsidiaries, 67

      • transnational, 69

      • trusts, 72

    • Coupon basis securities, 135

    • Credit, 332-336

      • assets, 337-339

      • borrowers, 343

      • credit measures, 344-347

      • lenders, 340-342

    • Credit aggregates, 280-284

    • Credit default swap contracts, 278

    • Credit derivative contracts, 277-278

    • Creditor approach, 232

    • Cross-currency interest rate swaps, 256, 275

    • Currency, 124-126, 289-292

    • Currency unions, 89-91, 292

    • Currency swap contracts, 275

    • Current accounts, 406, 413, 416

    • Current external balance, 427

    • DC. See Domestic credit

    • DCS. See Depository Corporations Survey

    • Dealers. See Securities underwriters and dealers

    • Debentures, 230

    • Debt, 332-333, 348-351

      • assumption, 211

      • business debt, 355

      • external debt, 358-361

      • household debt, 352-354

      • public sector debt, 356-357

      • refinancing, 210

      • rescheduling, 209

      • swaps, 212

    • Debtor approach, 231, 234

    • Deep discount basis securities, 135

    • Deep-discount bonds, 230

    • Defined benefit plans, 173, 194

    • Depository corporations, 85, 284, 321-322, 363

    • Depository Corporations Survey, 244, 248, 365, 377, 385, 389, 393, 397-398

    • Deposits, 127-133

      • Islamic, 491

      • restrictions, 132-133, 304-308

    • Discount basis securities, 135

    • Discounted present values, 220

    • Divisibility, 300

    • Domestic credit, 373-374, 376

    • Economic territory, 51-53

    • EFF. See Extended Fund Facility

    • Embedded derivatives, 254

    • Exchange rates, 204

    • Extended Fund Facility, 469, 474

    • External debt, 349, 358-361

    • Face value of bonds, 229-230

    • Fair values, 183-184, 196, 219-224

    • FCS. See Financial Corporations Survey

    • Finance companies, 100

    • Finance leasing companies, 100

    • Financial account, 407, 417, 429-433

    • Financial assets, 116-118

      • balance sheet data, 425

      • classification of, 120-179, 194

      • currency, 124-126

      • definition, 119

      • deposits, 127-133

      • financial derivatives, 176-178

      • gold loans, 156-164

      • gold swaps, 154-155, 157-164

      • insurance technical reserves, 168-173

      • lending of securities and other nonloan assets, 149-164

      • loans, 139-141

      • monetary gold, 121-122

      • net equity of households in life insurance reserves, 169-170

      • net equity of households in pension funds, 171-173

      • other accounts receivable/payable, 179

      • other deposits, 131-133

      • repurchase agreements, 142-148, 157-164

      • restricted deposits, 132-133

      • SDRs, 123

      • securities other than shares, 134-138

      • shares and other equity, 165-167

      • transferable deposits, 128-130

      • valuation of, 196-224

    • Financial auxiliaries, 88, 101

    • Financial corporations, 72, 363

      • central bank, 86-91

      • classification of trusts, 102-105

      • financial auxiliaries, 101

      • financial derivative intermediaries, 100

      • financial subsidiaries, 72

      • illustrative surveys, 404

      • insurance corporations, 97-98

      • other depository corporations, 92-95

      • other financial corporations, 96

      • other financial intermediaries, 99-100

      • pension funds, 97-98

      • scope of, 82-84

      • subsectors, 85-101

      • surveys of, 393-402

    • Financial Corporations Survey, 366, 368, 385, 393-395, 397, 402, 404

    • Financial derivatives, 176-178, 197

      • concepts and coverage, 249-255

      • credit derivatives, 277-278

      • foreign currency contracts, 275-276

      • forwards, 256-257

      • interest rate contracts, 274

      • margins, 269-273

      • options, 258-260

      • payments at inception, 264-266

      • recording transactions and positions, 261-268

      • sales in secondary markets, 267

      • settlement payments, 268

      • supplementary information, 279

      • types of, 251

    • Financial flows. See Flows

    • Financial guarantee corporations, 101

    • Financial holding corporations, 70

    • Financial intermediation

      • definition, 82

      • financial auxiliaries, 101

      • other depository corporations, 92-95

    • Financial investment, net, 449-450

    • Financial statistics

      • 1993 SNA accounts, 411-420

      • accumulation accounts, 421-423

      • balance sheets, 421-425

      • capital account, 426-428

      • coverage of, 406-407

      • financial accounts, 429-433

      • flow of funds, 408-410, 438-465

      • other changes in volume of assets account, 435-437

      • revaluation account, 434

      • structure of accounts, 411-420

    • Financial stocks. See Stocks

    • Fixed-price contracts for goods and services, 254

    • Flow of funds accounts, 408-410, 438-465

      • basic flow of funds accounts, 453-459

      • detailed flow of funds matrices, 462-465

      • integrated capital and financial accounts, 448-451

      • nature and uses of, 439-445

      • SNA integrated financial accounts, 460-461

      • structure of, 447

    • Flows, 182

      • compiling data, 192

      • components, 190-191

      • revaluations, 191

      • OCVA accounts, 191, 193-194

      • transactions, 191, 216

    • Foreign assets, net, 373

    • Foreign-controlled nonfinancial corporations, 106

    • Foreign currency, 291

    • Foreign-currency-denominated instruments

      • valuation of, 203-204

      • classification, 295

    • Foreign exchange companies, 101

    • Foreign exchange swap contracts, 275

    • Forward contracts, 177, 251, 256-257

    • Forward foreign exchange contracts, 275

    • Forward rate agreements, 274

    • FRAs. See Forward rate agreements

    • Functional statistics, 115

    • Fund consolidation accounts, 479-482

    • Funds contributed by owners, 214, 383

    • Futures, 256

    • General and special reserves, 214, 383

    • General Department of IMF, 471

    • General government, 108-110

      • nonmarket production, 78

      • subsectors, 110

    • General Resources Account of IMF, 471

    • Geographic territory, 52

    • GDP, 413, 416, 419-20

    • GNDI. See Gross national disposable income

    • GNI. See Gross national income

    • Gold

      • classification, 121-22

      • loans, 156-164

      • swaps, 154-155, 157-164

      • valuation of, 217-218

    • Goods and services account, 419

    • Goodwill, purchased, 194

    • Government Finance Statistics Manual, 357

    • Government units

      • functions of, 74

    • GRA. See General Resources Account

    • Gross fixed capital formation, 427

    • Gross national disposable income, 413, 416, 420

    • Gross national income, 413, 416

    • Gross recordings, 245-248

    • Gross saving, 413

    • Guarantees, 117, 180-181, 254

    • High-powered money, 325

    • Holding corporations, 70

    • Holding gains/losses, 199-200

    • Household debt, 352-354

    • Households, 63-64

      • defined, 111

      • informal economic activity, 113

      • production of goods and services, 112

      • residency, 59

    • IIP. See International Investment Position

    • Ijara, 490

    • Ijara Wa Iktina, 490

    • IMF accounts

      • consolidation accounts, 479-482

      • overview, 466-471

      • recording, 472-482

    • Import deposits, 132, 305

    • Indexed basis securities, 135

    • Indexed interest

      • valuation of, 215-216

    • Informal economic activity, 113

    • Initial margin, 270

    • Institutional and functional statistics, 115

    • Institutional units, 29, 31, 47

      • centers of economic interest, 54-61

      • classification into sectors, 80-81

      • corporations, 66-72

      • definition, 48, 62

      • financial corporations sector, 82-105

      • general government sector, 108-110

      • government units, 74

      • households, 64, 111-113

      • legal and social entities, 65

      • nonfinancial corporations sector, 106-107

      • nonprofit institutions, 75-79

      • nonprofit institutions serving households sector, 114

      • quasi-corporations, 73

      • residency, 50-61

      • social entities, 65

      • types of, 63

    • Insurance

      • auxiliaries, 101

      • contracts, 254

      • corporations, 97-98

      • net equity of households, 169-170

      • prepayments of premiums, 174-175

      • reserves against outstanding claims, 174-175

      • technical reserves, 168-175, 315

    • Intangible nonproduced assets, 425

    • Integrated capital and financial account, 448-451

    • Inter-Agency Task Force on Finance Statistics, 361

    • Interest

      • accrued, 227-239

      • arrears, 238-239, 390

      • valuation of, 215-216

    • Interest rate swap contracts, 274

    • Intermediation. See Financial intermediation

    • International Investment Position, 359

    • Intrasectoral claims, 242-245, 384

    • Inventories, 425

    • Investment deposit certificates, 486, 489

    • Investment pools, 100

    • Islamic banking, 118, 483-491

    • Items in the process of collection, 306

    • Leasing companies. See Finance leasing companies

    • Legal and social entities, 65

    • Lending, net, 428, 450

    • Lending sectors, 340-342

    • Letters of credit, 254

    • Liabilities

      • broad money liabilities, 92-93

      • changes in classification of, 194

      • valuation of, 196-224

    • Liquid investment pools, 100

    • Liquidity, 287, 299

      • characteristics of, 289

      • aggregates, 331

    • Loans

      • book value, 205-207

      • classification, 139-141

      • definition, 139

      • expected loan losses, 390

      • expected realizable value, 207

      • Islamic, 491

      • sectoral balance sheet classification, 382

      • valuation of, 40, 205-208

    • Long-term securities, 311

    • Margins, 269-273

    • Market exchange rates, 183

    • Market prices, 183, 213-214, 220

    • Maturity, 300

    • Medium-term securities, 311

    • Misclassification of data, 195

    • Monetary aggregates, 280-284

    • Monetary authorities accounts, 403, 477-482

    • Monetary base, 325-330

    • Monetary gold, 121-122

      • valuation of, 217-218

    • Monetary statistics, 362-366

      • framework overview, 367-378

      • illustrative surveys, 404

      • sectoral balance sheets, 379-392

      • surveys of financial corporations, 393-402

    • Money

      • functions of, 286

      • money holders, 316-320

      • money issuers, 321-324

    • Money market funds, 298, 314

    • Mortgage debt, 353

    • Mudarabah, 489

    • Multinational corporations, 69

    • Murabaha, 490

    • Musharakah, 490

    • Mutual funds, 129

    • National currency units, 203

    • National private nonfinancial corporations, 106

    • National wealth, 424

    • NCG. See Net claims on central government

    • Net claims on central government, 248, 373, 376-377

    • Net financial investment, 449

    • Net foreign assets, 373

    • Net lending/borrowing, 428, 450

    • Net recordings. See Netting of data

    • Net settlement payments, 268

    • Net worth, 424-425

    • Netting of data, 183, 245-248

    • NFA. See Net foreign assets

    • 1993 SNA. See System of National Accounts 1993

    • Nominal holding gains/losses, 200

    • Nonfinancial assets, 425

    • Nonfinancial corporations, 106-107

      • subsectors, 34

    • Nonmarket production, 77-78

    • Nonmonetary gold, 121-122

      • valuation of, 217-218

    • Nonoperating depository corporations, 308

    • Nonproduced nonfinancial assets, 425

    • Nonprofit institutions, 75-79

    • Nonprofit institutions serving households, 77, 114

    • Nonrepayable margin, 272

    • Nonresidents, 50

      • claims on, 91

      • liabilities to, 91

      • money holders, 317-318

      • reverse repos and, 160

    • Notional institutional units, 56

    • NPIs. See Nonprofit institutions

    • NPISHs. See Nonprofit institutions serving households

    • OCVA account. See Other changes in volume of assets account

    • ODCS. See Other Depository Corporations Survey

    • OFCS. See Other Financial Corporations Survey

    • Official exchange rates, 204

    • Offsetability, 250

    • Offshore banks, 94

    • Offshore units, 58

    • OIN. See Other items (net)

    • One-year rule, 59

    • Open maturity, 142

    • Option contracts, 177, 251, 258-260

    • Other changes in assets accounts, 407

    • Other changes in volume of assets account, 191, 194, 435-437

    • Other depository corporations, 85, 92-95, 363

    • Other Depository Corporations Survey, 244, 365, 368, 393-395, 398, 401

    • Other deposits, 131, 301

    • Other financial auxiliaries, 101

    • Other financial corporations, 32, 96, 363

    • Other Financial Corporations Survey, 366, 368, 393, 395-396, 400

    • Other financial instruments, 117, 180-181

    • Other financial intermediaries, 99-100

    • Other items (net), 373

    • Other nonfinancial corporations, 106

    • Overdrafts, 294

    • Participation term certificates, 486, 489

    • Payments at inception, 264-266

    • Pension auxiliaries, 101

    • Pension funds, 97-98, 102

      • net equity of households in, 171-173

    • Personal trusts, 102

    • PLS. See Profit and loss sharing certificates

    • Poverty Reduction and Growth Facility, 470, 474

    • Preferred stocks, 136

    • PRGF. See Poverty Reduction and Growth Facility

    • Primary distribution of income accounts, 416

    • Principal

      • valuation of, 215-216

    • Produced assets, 425

    • Production accounts, 416

    • Profit and loss sharing certificates, 486, 489

    • Public exchanges, 101

    • Public nonfinancial corporations, 106

    • Public sector debt, 356-357

    • Purchased goodwill, 194

    • Put options, 258

    • Qard-hasan deposits, 485, 489

    • Qard-hasan loans, 490

    • Quasi-corporations, 57, 64, 73, 84

    • RCBs. See Regional central banks

    • Redemption values, 229-230

    • Reference price, 252

    • Refinancing debt, 210

    • Regional central banks, 89-91

    • Repayable margin, 270-271

    • Repos, See Repurchase agreements

    • Repurchase agreements, 142-148, 157-164, 303

    • Rescheduling debt, 209

    • Reserve tranche, 475

    • Residency, 47, 50-51

      • center of economic interest, 54-61

      • economic territory, 52-53

    • Rest of the world, 411-412, 416, 420

    • Restricted deposits, 132-133, 304-308

    • Retained earnings, 214, 383

    • Revaluation account, 199, 407, 417, 434

    • Revaluations, 190-191, 263,

    • Reverse repos, 142, 146-148, 160

    • ROW. See Rest of the world

    • Salaf, 490

    • Salam, 490

    • Saving, 427

    • Savings deposits, 294, 302

    • SDR Department of IMF, 471

    • SDRs. See Special drawing rights

    • Secondary distribution of income accounts, 416

    • Sectoral balance sheets, 186, 364, 379-392

    • Sectorization

      • financial corporations sector, 82-105

      • importance of, 80

      • of institutional units, 30-35, 80-81

      • principles of, 46

    • Securitization, 137

    • Securities lending, 149-153, 157-164

    • Securities markets, 101

    • Securities other than shares, 134-138, 301, 309

      • Islamic, 491

      • sectoral balance sheet classification, 382

    • Securities underwriters and dealers, 100

    • Settlement payments, 268

    • Shares and other equity, 165-167, 313-314, 383

      • Islamic, 491

      • valuation of, 213-214

    • Short selling, 147

    • SNA. See System of National Accounts 1993

    • SNA integrated financial account, 460-461

    • Social entities, 65

    • Special Drawing Rights, 123, 194, 214, 469-476

    • Special purpose vehicles, 72

    • Specialized financial intermediaries, 100

    • Spread option contracts, 278

    • Stand-By Arrangements, 469, 474

    • Stocks, 182

      • closing, 191

      • compiling data, 192

      • opening, 191

      • valuation of, 198

    • Strike price, 251, 256, 258

    • Subsidiaries, 67

    • Surveys, 187, 364-365, See also specific surveys

      • common characteristics, 395-396

      • illustrative surveys, 404

    • Swap contracts, 256

    • Swapping debt, 212

    • Swaptions, 259

    • System of National Accounts 1993, 411-437

    • Tangible nonproduced assets, 425

    • Term deposits, 131, 302

    • Time of recording

      • accrual accounting, 227-239

      • simultaneous recording, 225-226

      • for transactions, 185

    • Timing delays, 226, 255

    • Total return swap contracts, 278

    • Tradability, 250

    • Trade credit, 342

    • Transferable deposits, 128-130, 289, 293-295

    • Transnational corporations, 69

    • Travelers’ checks, 296

    • Trusts, 72

      • classification of, 102-105

    • Uncompensated seizures, 194

    • Underwriters. See Securities underwriters and dealers

    • Use of income account, 416

    • Valuation, 183

      • adjustments, 214, 383

      • changes, 200

      • debt reorganizations, 209-212

      • fair values, 219-224

      • of financial derivatives, 262-263

      • general principles, 196-202

      • gold, 217-218

      • indexed interest and principal, 215-216

      • instruments denominated in foreign currency, 203-204

      • of loans, 205-208

      • national currency units, 203-204

      • shares and other equity, 213-214

    • Value added, 416

    • Variation margin, 272

    • Vehicle companies, 100

    • Write-offs, 194

    • Writing down debt, 211-212

    • Yield, 300

    • Zakat funds, 490

    • Zero coupon basis securities, 135

    • Zero coupon bonds, 230

    The principles and concepts in this manual also accord with those in the fifth edition of the Balance of Payments Manual (1993) and the forthcoming IMF manual on government finance statistics, which are designed to have consistency with the 1993 SNA. Recent revisions in the 1993 SNA and the Balance of Payments Manual—in particular, those dealing with the statistical treatment of financial derivatives—have been incorporated into the principles and concepts of this manual.

    The 1993 SNA uses “rest of the world” to refer collectively to nonresidents. In this manual, nonresidents refers to all entities, or groupings of entities, that are not residents of an economy.

    The 1993 SNA also contains two separate subcategories of other depository corporations, namely, deposit money corporations (which accept transferable deposits) and “other” (which do not accept transferable deposits). These subcategories are not used in the construction of the monetary and financial statistics as presented in this manual. Supplementary data for these subcategories may be of analytical usefulness in the context of the monetary and financial statistics in some countries.

    Currency and deposits are further disaggregated by national/foreign currency of denomination. Insurance technical reserves are classified as (1) net equity of households in life insurance reserves and in pension funds and (2) prepayments of premiums and reserves against outstanding claims. Other accounts receivable/payable are classified as (1) trade credit and advances and (2) other.

    Significant amount” means that the enterprise maintains at least one production establishment in the country and plans to operate that establishment indefinitely or over a long period of time (i.e., one year or more).

    A holding company is classified as resident or nonresident on the basis of the center of economic interest from which it controls the corporations in the group.

    Deposit restrictions as defined herein do not include limitations on early withdrawal of deposits that have agreed maturities. A time deposit withdrawal prior to maturity may not be allowed, or, if allowed, typically carries a penalty for early withdrawal. Such withdrawal conditions are treated as standard maturity provisions of time deposits, rather than as deposit restrictions.

    Loans and deposits, which may have almost identical characteristics, are distinguished on the basis of the representation in the documents that evidence them.

    “Open” maturity is where both parties agree daily to renew or terminate the agreement. Such an arrangement avoids settlement costs if both parties wish to rollover the repo on a continuing basis.

    Similar securities can be substituted if permitted under the agreement “Similar” maybe defined very narrowly or more broadly, depending on the circumstances.

    Repurchase agreements that are included in the national definition of broad money should be classified as non-transferable deposits. All other securities repurchase agreements should be classified under loans.

    This treatment should be applied to the recording of all short sales of securities, whether or not associated with repos.

    The relevant security asset category may still record positive holdings if other securities of that category are held on-balance sheet to a greater value than those that have sold “short”.

    Similar securities can be substituted if permitted under the lending arrangements. “Similar” may be defined very narrowly or more broadly, depending on the circumstances.

    If the original owner does not retain these elements of ownership, the provision of the securities should be viewed as an outright sale.

    In some instances, no collateral is provided.

    Conceivably, the collateral might be provided in part in securities and the rest in cash. If so, the securities lending should be recorded as a Loan in the amount of the cash collateral and, in all other respects, should not be recorded on the balance sheets of the lender and borrower of the securities.

    These swaps should not be confused with interest rate or currency swaps that are financial derivatives, as described later in this chapter.

    Gold swaps may be more broadly defined to include arrangements involving nonmonetary gold and parties other than qualified holders of monetary gold.

    Assuming no payment of margin.

    This could create the situation where monetary gold is overstated, in as far as the same holding of gold would be reported on the balance sheet of two monetary authorities at the same time, if both the originator of the gold swap and the outright purchaser are monetary authorities, and the outright seller is not a monetary authority, as there will be no offsetting negative position—the negative position will be recorded by the nonmonetary authority in nonmonetary gold.

    Preferred stocks or shares that pay a fixed income and do not provide for participation in the distribution of the residual value of an incorporated enterprise on dissolution are included in securities other than shares.

    In many cases, general reserves are required by law to provide the entity and its creditors with an added measure of protection from the effects of losses. Special reserves also provide added protection, but from the effects of losses that may arise from specific activities of the corporation or quasi-corporation.

    Debt write-off is a unilateral cancellation of debt by the creditor and is recorded in the OCVA account. In contrast, debt forgiveness is a voluntary, mutual cancellation of a creditor’s claim and a debtor’s obligation, which is recorded as a transaction in the form of a capital transfer from the creditor to the debtor.

    For example, if a financial corporation is newly authorized to accept liabilities included in the national definition of broad money, it would be reclassified from “other financial corporations” to “other depository corporations.” Other examples of events that result in changes in sector (or subsector) classification are the privatization of public nonfinancial corporations; divestitures within an institutional unit, resulting in the creation of two or more units with separate financial accounts and operating in different sectors; and changes in the institutional units within an economy arising from changes in economic territory when countries are unified into a single nation or when one country is divided into two or more countries.

    When a corporation is absorbed by one or more other corporations, all claims and liabilities between the corporation that is absorbed and those that absorbed it disappear at the level of the data reported for macroeconomic statistics. Symmetrically, when a corporation is split into more than one institutional unit, new claims and liabilities between the new corporations may appear. The disappearance and appearance of the claims and liabilities between these institutional units lead to entries to the OCVA account.

    A neutral holding gain or loss is defined as a holding gain or loss that is in the same proportion as the change in the general price level during the holding period. A real holding gain or loss is defined as the amount of gain or loss after deducting the neutral holding gain or loss from the nominal gain or loss. A real holding gain occurs when the purchasing power of a financial asset increases during the holding period. Methods of estimating real holding gains and losses on nonfinancial and financial assets and liabilities are described in the 1993 SNA (paragraphs 12.63-115). All components of the monetary and financial statistics, as described in Chapters 7 and 8 of this manual, are in nominal terms. However, it is recognized that supplementary data on real holding gains and losses are useful for various types of analysis.

    Market exchange rate is defined as an exchange rate determined by market forces, whereas an official exchange rate is an exchange rate determined on an administered basis by the national authorities. Official exchange rates may be administered so as to keep them closely aligned with market exchange rates or, at the other extreme, may differ substantially from market exchange rates for extended periods of time. Official multiple exchange rate systems are schedules of official exchanges rates, used to apply separate exchange rates to various categories of transactions and/or transactors.

    A debt swap should be distinguished from the interest rate and currency swap contracts that are financial derivatives. These derivative contracts involve the parties swapping of interest and, in some cases, principal payments on underlying financial instruments, whereas the debt swaps covered in this section involve the swapping of the underlying instruments themselves. A debt-debt swap is distinguished from a debt assumption; a debt-debt swap involves two parties, whereas a debt assumption also involves a third party—the assumer of the debt.

    Changes in the value of SDR allocations are included in the revaluation account.

    A single discount rate, i, is usually used to discount the cash flow in all future periods. In some circumstances, using different discount rates in the various future periods may be warranted.

    For securities sold for more than face value, the premium (L-F) would be apportioned—in effect, as “negative accrued interest”—over the remaining periods to maturity.

    In this content, the amount of “securities purchased” and “loans extended” includes accrued interest and principal accretion that results from indexation.

    This annex draws on Financial Derivatives—A Supplement to the Fifth Edition (1993) of the Balance of Payments Manual (IMF, Washington, DC, 2000).

    Offsetability should not be confused with an offset, which is the legal right of a debtor to net its claims against the same counterparty. It is recommended that positions be recorded on a gross basis whenever possible.

    A cap imposes an upper limit; a floor sets a lower limit; and a collar maintains upper and lower bounds on floating-rate interest payments or receipts.

    However, the net basis is recommended for transactions in financial derivatives classified as reserve assets.

    In many countries, currency and transferable deposits comprise what is often termed narrow money.

    For most countries, the major cross-border currency flows arise from the currency transport of tourists, business travelers, cross-border workers, emigrant workers returning to their home countries, and those engaged in smuggling or other illegal activities. For those countries that use foreign currency as a major form of legal tender, official shipments of foreign currency may be used to augment the currency stock. The records for such shipments can be used in estimating the currency stocks in both countries—i.e., the ‘Importing” and “exporting” countries.

    If the post office constitutes a separate institutional unit with a predominantly financial character, it should be classified as an other depository corporation and thus be included in the ODCS described in Chapter 7.

    The surveys contain stock and flow data encompassing all assets and liabilities for the units covered by the respective survey. Each is based on data for all institutional units within the subsector. Thus, the term survey refers to comprehensive data for all units in a subsector, rather than to sample survey data that would cover only a subset of units or only a subset of the asset and liability accounts.

    National definitions or money may include liabilities of sectors in addition to those of the financial corporations sector. These components of money may include currency issued by the central government, deposits issued by the public nonfinancial corporations sector (i.e., post offices), and currency issued by nonresidents. These components are combined with the money components in the DCS to obtain monetary aggregates as nationally defined.

    The focus of the CBS with respect to foreign assets and liabilities is on all categories of claims on and liabilities to nonresidents without separate identification of international reserve assets. Guidance on international reserves data is given in Data Template an International Resents and Foreign Currency Liquidity Operational Guidelines (Provisional), October 1999 (Washington: IMF),

    This presentation is necessary if, in compiling the FCS, the objective is to show all data used in consolidating the relevant subsector surveys. Such presentation has the virtue of transparency; it gives users access to all of the data involved in compiling the FCS. A streamlined presentation that excludes these “of which” items for claims on and liabilities to other financial corporations would not provide such access.

    The recommended statistical treatment of accounts with the IMF is described in Appendix 1 to this manual.

    Balancing items are accounting constructs that define key economic concepts that cannot be observed or measured independently of the other entries in the account.

    Chapter II of the 1993 SNA includes a summary description of the current accounts, and Chapters VI-IX provide a complete description.

    Equation 1 represents the production approach to calculating GDP; equation 2, the income approach; and equation 11b, the expenditure approach.

    As found in the balance of payments, which equals (with opposite sign) the current external balance in the 1993 SNA sequence of accounts for the ROW.

    These matrices incorporate some modifications to the flow of funds matrices shown in Tables 11.3a and 11.3b of the 1993 SNA to ensure consistency with the sectoral and financial assets breakdowns for the surveys presented in Chapter 7.

    For a detailed discussion of the Fund’s financial organization and operations, see International Monetary Fund, Financial Organization and Operations of the IMF, IMF Pamphlet Series, No. 45 fifth edition (Washington: International Monetary Fund, 1998).

    Balances in the IMF No. 2 account, which can be used to cover a country’s administrative expenses associated with its membership in the Fund, are created by the Fund’s transferring up to one-tenth of one percent of quota from the IMF No. 1 account.

    For example, if member A purchases member B’s currency in the course of using Fund resources, the Fund’s holdings of B’s currency fall, and there is an equal increase in B’s reserve tranche position. This increase in B’s reserve tranche position recognizes the possibility that A will ask B to exchange its national currency for reserve assets such as U.S. dollars or SDRs.

    This appendix draws on Zubair Iqbal and Abbas Mirakhor, Islamic Banking (Washington: International Monetary Fund, 1987),

    The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has set accounting, auditing, governance, Shari’a and ethical standards for Islamic financial institutions. The AAOIFI is a self-regulatory international autonomous non-profit organization that was established in 1991 in Bahrain.

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