Exchange rate policy has always been central to the work of the IMF. Ever since the breakdown of the Bretton Woods system, there has been a widespread desire to avoid excessive volatility in the exchange rates of the world’s major currencies. And the IMF’s bilateral and multilateral surveillance has become an important way for the international community to signal its views and seek better coordination of underlying economic policies. Our Research Department’s analysis, for example, points to the recent persistent overvaluation of the U.S. dollar and the undervaluation of the euro. But in a world of highly integrated global capital markets, I do not see any realistic alternative to floating exchange rates among the major currencies. So, our members need to deal with currency misalignments by concentrating on the fundamentals—especially, in the cases of the European Union and Japan, by accelerating the pace of key structural reforms.
This Guide has been prepared to assist economies that participate or are preparing to participate in the Coordinated Portfolio Investment Survey (CPIS). For economies already participating in the CPIS, the Guide provides statistical guidelines that compilers may find useful for improving the quality of the data and for compiling additional items that were introduced in the aftermath of the 2007–2008 financial crisis. Additionally, this third edition updates the second edition of the CPIS Guide (2002) to reflect the adoption of the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6) as the standard framework for compiling cross-border position statistics and to provide compilation guidance drawing on International Monetary Fund (IMF) staff and IMF members’ experience. This chapter covers the purpose and background of the CPIS and provides an overview of how the Guide is organized.
The Guide has been prepared to assist economies that participate or are considering participating in the Coordinated Direct Investment Survey (CDIS). The Guide is also intended to assist economies already participating in the CDIS by providing statistical guidelines that compilers may find useful for improving the quality of their direct investment data. It updates the CDIS Guide that was released in 2010 to incorporate clarifications based on the International Monetary Fund’s (IMF’s) experience in conducting the CDIS and in preparing the Balance of Payments and International Investment Position Compilation Guide (BPM6 CG). This chapter covers the purpose, background, and strategy adopted for the implementation of the CDIS, and an overview on how the Guide is organized.