International Monetary Fund. Monetary and Capital Markets Department
Only the IMF is officialy responsible for reporting the foreign exchange arrangements, exchange and trade restrictions, and prudential measures of its 185 member countries. This report draws upon information available to the IMF from a number of sources, including data provided in the course of official staff visits to member countries. Published since 1950, this authoritative, annually updated reference is based upon a unique IMF-maintained database that tracks monetary exchange arrangements for each of its 185 members, including historical information, along with entries for Hong Kong SAR (People's Republic of China) and Aruba and Netherlands Antilles (both Kingdom of the Netherlands). An introduction to the volume provides a summary of recent global trends and developments in the areas covered by the publication. It also provides insight into the types of capital controls most frequently used by countries dealing with increased capital inflows. Individual chapters for each member country report exchange measures in place, the structure and setting of exchange rates, arrangements for payments and receipts, procedures for resident and nonresident accounts, mechanisms for import and export payments and receipts, controls on capital transactions, and provisions specific to the financial sector. A separate section in each chapter lists changes made during 2006 and the first half of 2007. Information is presented in a clear, easy-to-read tabular format.
International Monetary Fund. External Relations Dept.
John Lipsky's visit to South Africa and Mali, Latin American growth, Uruguay repays loan, Eastern Europe, Albania's economy, Belarus and Morocco, U.S. current account deficit, Francis Warnock, IMF governance, fiscal adjustment.
There are 13 countries in Central, Eastern and Southeastern Europe (CESEE) with floating
exchange rate regimes, de jure. This paper uses the framework pioneered by Frankel and
Wei (1994) and extended in Frankel and Wei (2008) to show that most of them have been
tracking either the euro or the US dollar in recent years. Eight countries, all of them
current or aspiring EU members, track the euro. Of the five countries keying on the US
dollar in various degrees, all but one belong to the Commonwealth of Independent States.
The paper shows that the extent to which each country’s currency tracks the euro (or the
dollar) is correlated with the structure of its external trade and finance. However, some
countries appear to track the EUR or USD to an extent which appears inconsistent with
inflation targeting, trade or financial integration, or the extent of business cycle
synchronization. The phenomenon is particularly pronounced among the countries in the
CESEE euro bloc, which may be deliberately gravitating around the euro in anticipation
of eventually joining the Euro Area.
This paper reviews the design of conditionality in Fund-supported programs from 2002 to end-September 2011, with an emphasis on recent years. It focuses on the content and application of program conditionality—especially structural conditionality—in relation to the 2002 Conditionality Guidelines (the "Guidelines"), the Staff Statement on Principles Underlying the Guidelines on Conditionality, and subsequent revisions to operational guidance on conditionality. The analysis is based on the five key interrelated principles guiding the design of conditionality: national ownership of programs, parsimony in program-related conditions, tailoring to country circumstances, effective coordination with other multilateral institutions, and clarity in the specification of conditions. In particular, the principle of parsimony requires that program-related conditions be critical (or the minimum necessary) to achieve program objectives and goals, critical for monitoring program implementation, or necessary for implementing specific provisions under the Articles of Agreement (the "criticality criterion"). Beyond assessing compliance with these guidelines and principles, the paper also examines the implementation of conditionality