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International Monetary Fund. Statistics Dept.
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M&G; reserve asset; option contract; windowtext 1.5pt; reserve asset treatment; foreign currency; foreign currencies vis-à-vis; balance of payments financing need; substitute reserve asset; Reserve assets; Currencies; Securities; Options; International reserves; Global; Africa; Caribbean
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Abstract

A1.1 The IMF’s Special Data Dissemination Standard (SDDS) was established by the Fund’s executive board in March 1996, with the aim of enhancing the availability of timely, reliable, and comprehensive economic and financial statistics. The SDDS is intended to guide member countries that have, or might seek, access to international capital markets in their provision of economic and financial data to the public. It was anticipated that the SDDS would contribute to the pursuit of sound macroeconomic policies and aid the functioning of financial markets.

APPENDICES

Appendix 1. The Special Data Dissemination Standard and the Data Template on International Reserves and Foreign Currency Liquidity

A1.1 The IMF’s Special Data Dissemination Standard (SDDS) was established by the Fund’s executive board in March 1996, with the aim of enhancing the availability of timely, reliable, and comprehensive economic and financial statistics. The SDDS is intended to guide member countries that have, or might seek, access to international capital markets in their provision of economic and financial data to the public. It was anticipated that the SDDS would contribute to the pursuit of sound macroeconomic policies and aid the functioning of financial markets.

A1.2 Subscription to the SDDS was and remains voluntary, and subscribing members agree to provide information on data categories that cover the four sectors of the economy (national income and prices, the fiscal sector, the financial sector, and the external sector). Within these sectors, the SDDS prescribes the coverage, periodicity (or frequency), and timeliness with which the data are to be disseminated. The SDDS coverage also prescribes the advance dissemination of release calendars for the data categories and that the data be simultaneously released to all interested parties. More information on the SDDS can be found on the Dissemination Standards Bulletin Board (DSBB) on the IMF’s Website: http://dsbb.imf.org.

A1.3 The original (March 1996) specification of the SDDS included, as a prescribed category, the presentation of information on gross international reserves (reserve assets) with a periodicity of one month and a lag of no more than one week. The provision of these data with a periodicity of one week was encouraged. The SDDS also encouraged, but did not prescribe, the provision of information on reserve related liabilities.

A1.4 At the time of the executive board’s first review of the SDDS in December 1997, events in international financial markets had underscored the importance of the timely provision of information on a country’s reserves and reserve related liabilities. It became clear that monthly information on gross international reserves alone did not allow for a sufficiently comprehensive assessment of a country’s official foreign currency exposure, and hence its vulnerability to pressures on its foreign currency reserves. At this time the executive board asked the staff to consult with SDDS subscribing countries and with users of the SDDS to determine what might be done to strengthen the coverage of reserves and reserve-related liabilities in the SDDS. The results of this consultation were initially considered by the executive board in early September 1998 and were further discussed in December 1998 (at the time of the second review of the SDDS), including review of an initial proposal for a data template on international reserves and related items.

A1.5 The executive board reached a decision on the means of strengthening the provision of information on international reserves and foreign currency liquidity within the SDDS in March 1999 by ratifying the dissemination of data on reserves through the Reserves Data Template. In addition to providing for more explicit specification of the constituents of official reserve assets, the Template provides for the inclusion of details on other official foreign currency assets and on predetermined and contingent short-term net drains on foreign currency assets. It is thus much broader in coverage than the original SDDS specification of gross reserves assets and established the new standard for the provision of information to the public on the amount and composition of reserve assets, other foreign exchange assets held by the central bank and the government, short-term foreign currency liabilities, and related activities that can lead to demands on reserves (such as financial derivatives positions and guarantees extended by the government for private borrowing).

A1.6 In reaching its decision on the Reserves Data Template, the executive board took account of the widespread interest in increasing the transparency of information on international reserves and related information. It was also conscious of the concerns expressed by member countries about the resource costs of compiling and disseminating detailed, frequent, and timely data and the possibility that this would reduce the effectiveness of exchange market intervention. The final decision reflected a balancing of these objectives and concerns. The Template was finalized in cooperation with a working group of the Committee on the Global Financial System of the G10 Central Banks.

A1.7 The Reserves Data Template was modified in April 2009 to be consistent with an IMF board decision on strengthening the effectiveness of Article VIII, Section 5 of the IMF Articles of Agreement. The IMF executive board saw the need for the Reserves Data Template to cover all derivatives denominated in foreign currency and settled by other means (e.g., in domestic currency), Section IV.(1)(b), and not just nondeliverable forwards as previously. The changes in the Reserves Data Template became effective in August 2009, starting with data reported for July 2009. The Guidelines have been updated to ensure consistency with the modifications to the Reserves Data Template and the text of the BPM6.

A1.8 The SDDS prescription for completion of the Reserves Data Template calls for the full dissemination of data on a monthly basis, with a lag of no more than one month, although data on gross international reserves are still prescribed for dissemination on a monthly basis with a lag of no more than one week. The dissemination of the full template on a weekly basis, with a lag of no more than one week, is encouraged.1

Appendix 2. Sample Form for Presenting Data in the Template on International Reserves and Foreign Currency Liquidity

Information to be Disclosed by the Monetary Authorities and Other Central Government, Excluding Social Security 1, 2, 3

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Footnotes

In principle, only instruments denominated and settled in foreign currency (or those whose valuation is directly dependent on the exchange rate and that are settled in foreign currency) are to be included in Sections I, II, and III of the Template. Financial instruments denominated in foreign currency and settled in other ways (for example, in domestic currency or commodities) are included as memo items under Section IV.

Netting of positions is allowed only if they have the same maturity, are against the same counterparty, and a master netting agreement is in place. Positions on organized exchanges could also be netted.

See definition of monetary authorities in paragraph 21 of the Guidelines.

In cases of large positions vis-à-vis institutions headquartered in the reporting country, in instruments other than deposits or securities, they should be reported as separate items.

The valuation basis for gold assets should be disclosed; ideally this would be done by showing the volume and price.

Including interest payments due within the corresponding time horizons. Foreign currency deposits held by nonresidents with central banks should also be included here. Securities referred to are those issued by the monetary authorities and the central government (excluding social security).

In the event that there are forward or futures positions with a residual maturity greater than one year, these should be reported separately under Section IV.

Only bonds with a residual maturity greater than one year should be reported under this item, as those with shorter maturities will already be included in Section II, above.

Reporters should distinguish potential inflows and potential outflows resulting from contingent lines of credit and report them separately in the specified format.

In the event that there are options positions with a residual maturity greater than one year, these should be reported separately under Section IV.

These “stress tests” are an encouraged, rather than a prescribed, category of information in the IMF’s Special Data Dissemination Standard (SDDS). Results of the stress tests could be disclosed in the form of a graph. As a rule, notional value should be reported. However, in the case of cash-settled options, the estimated future inflow/outflow should be disclosed. Positions are “in the money” or would be, under the assumed values.

Distinguish between assets and liabilities where applicable.

Identify types of instrument; the valuation principles should be the same as in Sections I–III. The nominal/notional value of derivatives should be shown in the same format as for the nominal/notional values of forwards/futures in Section II and of options in Section III.

Only assets included in Section I that are pledged should be reported here.

Assets that are lent or repoed should be reported here, whether or not they have been included in Section I of the Template, along with any associated liabilities (in Section II). However, these should be reported in two separate categories, depending on whether or not they have been included in Section I. Similarly, securities that are borrowed or acquired under repo agreements should be reported as a separate item and treated symmetrically. Market values should be reported and the accounting treatment disclosed.

Identify types of instrument. The main characteristics of internal models used to calculate the market value should be disclosed.

Appendix 3. Summary of Guidelines for Reporting Specific Data in the Reserves Data Template

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Market value of securities may differ from cash exchanged.

If additional securities are provided under the repo (perhaps because of a margin call), the treatment of securities is the same as for the initial transaction.

Should cover those undertaken by both the monetary authorities and the central government (excluding social security funds), and for any purpose (i.e., not limited to those used for reserves management).

Appendix 4. Stress Testing of “In-the-Money” Options under the Five Scenarios Shown in the Reserves Data Template*

A4.1 All options should, if necessary, first be converted into puts and calls in foreign currency. For this conversion, the strike price is used. For example, the central bank has written a call option whereby the purchaser of the option has the right to buy LC100 million at a strike price of LC90 = $1.001 (in this example, the dollar is a foreign currency to the central bank that wrote the call option). As it is written, this is a local currency call option. In converting it into a foreign currency option, the right to buy LC100 million at a price of LC90 = $1.00 is equivalent to the right to sell $1.11 million (100 million/90) at the same strike price of LC90 = $1.00. In terms of the Template, this will be treated as a put option that the central authorities have written with a notional value of $1.11 million. Similarly, if the central bank has purchased a local currency put option with a notional value of LC200 million and a strike price of LC110 = $1.00, this will be treated as a purchased foreign currency call option with a notional value of $1.818 million (200 million/110).

A4.2 To aggregate the notional values, the options need to be expressed in a common currency. For purposes of this Template, that common currency is recommended to be the one in which the Template data are reported. For example, if the reporting currency is the U.S. dollar, to convert the notional values to U.S. dollar, the current market exchange rates are used, not the strike prices. Suppose, for example, that the central authorities wrote a call option to buy JY1.0 million with a strike price of JY1.4 = LC1.00. Assuming the exchange rate of JY 125 = $1.00, this would translate into an $8,000 call option (JY1,000,000 × 1/125). The strike price should not be used when converting from one foreign currency to another.

A4.3 To sum up, in computing the notional value of the options, neither the current nor the future local currency market exchange rate is used. When options written in terms of a given amount of local currency received or delivered in exchange for foreign currency are converted into foreign currency options, the strike prices are used. When options are written in terms of a foreign currency other than the foreign currency used in reporting the Template data, the market rate between the reporting currency and the foreign currency of the contract should be used to convert the notional value of the options to the reporting currency.2

A4.4 After all options have been converted to puts and calls in the reporting currency (say, U.S. dollars) and maturities have been determined, filling in the Template requires entering the relevant data.

A4.5 In the Pro Memoria section of the Template, five simple scenarios for the local currency exchange rate are used to gauge the potential impact of the options on foreign exchange resources. This appendix illustrates the foreign currency flows under the five scenarios.

A4.6 The first scenario assumes the local currency exchange rate remains unchanged relative to all foreign currencies. The second scenario assumes an immediate 5 percent depreciation of the local currency relative to all foreign currencies and no further change in exchange rates thereafter. The third scenario posits an immediate 5 percent appreciation of the local currency against all foreign currencies and no further change in exchange rates. The fourth and fifth scenarios examine 10 percent depreciation and appreciation, respectively.

A4.7 As noted in Chapter 4 of this document, a foreign currency call option gives its holder the right to buy foreign currency at a given local currency strike price. If the strike price is below the market price, the call option holder can exercise his option and receive (buy) foreign currency at the below-market strike price. Thus, a call option will be exercised, and is “in the money,” when the market price is above the strike price. A foreign currency put option gives its holder the right to sell foreign currency at a given local currency strike price. If the strike price is above the market price, the put option holder can exercise his option and sell foreign currency at the above-market strike price. Thus, a put option will be exercised, and is “in the money,” when the market price is below the strike price.

A4.8 If the central bank buys a call option and then exercises it, this results in an inflow of foreign currency. Similarly, if the central bank writes (sells) a put option and it is exercised, this also results in an inflow of foreign currency. As such, for purposes of this Template, bought calls and written puts are considered long foreign currency positions because their exercise results in an inflow of foreign currency. On the other hand, if the central bank writes (sells) a call option, and if it buys a put option, and they are exercised, this results in outflows of foreign currency. As such, for purposes of this Template, written calls and bought puts are considered short foreign currency positions.

A4.9 In the tables that follow, the convention of expressing the exchange rate as local currency (LC) per unit of foreign currency (viz., LC/$) is applied. That is, appreciation of the local currency is associated with a decline in LC/$; and vice versa, for a depreciation of the local currency. In Table A4.1, these are shown as +5% (depreciation); –5% (appreciation); +10% (depreciation), and –10% (appreciation), respectively, under pro memoria items (2), (3), (4), and (5). Table A4.1 shows the notional value of the options that are in the money at current exchange rates and under the four additional scenarios of currency depreciation and appreciation.

Table A4.1

Results of An Illustration of In-the-Money Options and Related Stress-Testing Under Specific Assumptions of Exchange Rate Changes (Nominal Value)

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A4.10 In the tables, the sign (+) is used to indicate inflows of foreign currency; and the (–) sign, outflows of foreign currency.

A4.11 In Table A4.1 the results shown for pro memoria items (1)(a) short position (viz., –300, –50, 0) and (1)(b) long position (viz., +200, +300, +300) at current exchange rates correspond to short and long positions under exchange rates of LC/$ = 100, as depicted by figures that are in italics in supporting Tables A4.2–A4.4.

Table A4.2

Foreign Currency Flows Resulting from Options Positions with Possible Exercise Date Less Than One Month Hence

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Table A4.3

Foreign Currency Flows Resulting from Options Positions with Possible Exercise Date One to Three Month Hence

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Table A4.4

Foreign Currency Flows Resulting from Options Positions with Possible Exercise Date Three Months to One Year Hence

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A4.12 Results shown in Table A4.1 for pro memoria items (2)(a) (viz., –1200, –700, –400, –100) and (2)(b) (viz., +1300, +400, +400, +500) correspond to figures that are in bold in supporting Tables A4.2–A4.4. The “total” in Table A represents the sum of each row.

A4.13 Figures A4.1–A4.5 present graphically the results shown in Tables A4.1–A4.4 under long and short positions for the three periods under the one-year horizon.

Figure A4.1
Figure A4.1

Foreign Currency Flows from Options Positions (up to 1 month)

Figure A4.2
Figure A4.2

Foreign currency Flows from Options Positions (1 to 3 month)

Figure A4.3
Figure A4.3

Foreign currency Flows from Options Positions (3 months to 1 year)

Figure A4.4
Figure A4.4

Foreign currency Flows from Short Options Positions

Figure A4.5
Figure A4.5

Foreign Currency Flows from Long Options Positions

Appendix 5. Reporting Data to the IMF for Redissemination on the IMF’s Website

A5.1 The IMF’s executive board in March 2000 approved the establishment of a common database for the collection of template data disseminated by SDDS-subscribing countries, and the redissemination of these data through the Fund’s external Website. The “Data Template on International Reserves and Foreign Currency Liquidity” Website has been operational since October 2000 and is accessible at http://www.imf.org/external/np/sta/ir/IRProcessWeb/index.aspx.

A5.2 Submission of reserves template data to the IMF is voluntary. Countries subscribing to the SDDS provide data to the IMF soon after they disseminate the data in their national media. For example, countries that provide monthly data report such data within one month of the reference date. Non-SDDS-subscribing countries also are encouraged to report their reserves template data for dissemination on this Website.

A5.3 The data are presented in a common format and in a common currency, thereby enhancing the comparability of the Reserves Data Template data among countries, facilitating access by market participants and other users, and fostering greater transparency. The common format developed by the IMF is shown in Appendix 2 of this document. The common currency is the U.S. dollar. Periodicity of data is generally monthly, and for some countries, weekly.

A5.4 In addition to current data, the IMF Reserves Data Template Website provides times series data (historical data) by country on official reserve assets, other foreign currency assets of the monetary authorities and the central government, and predetermined and contingent net drains on foreign currency assets. To facilitate viewing, printing, and downloading information, the data are available in html (hypertext markup language), pdf (portable document format), and csv (comma-separated values) formats. The Website is updated continuously, that is, data are disseminated as they are reported to the IMF after undergoing data consistency checks.

A5.5 To facilitate processing of the data for dissemination on the IMF’s Website, the IMF requests that countries transmit their data in specific reporting forms and follow certain accounting conventions. The notes below provide some guidance on such data reporting.

  1. Reporting forms may be requested by sending an email to RESERVESTEMPLATE@IMF.ORG.

  2. Countries are encouraged to submit their Template data by e-mail to RESERVESTEMPLATE@IMF.ORG.

  3. Data are to be submitted in either an Excel spreadsheet or by using SDMX standards. Form R1.xls is used for reporting consolidated data pertaining to the monetary authorities and the central government. Form R1a.xls is used in cases where, for legal and institutional reasons, countries present separate data for the monetary authorities and the central government. The structure of the reporting templates in Excel is protected from alteration by reporting countries.

  4. For data submitted using the Excel reporting forms, dropdown menus are to be used to select the country name, the month and year for which data are shown, and the currency and scale in which data are reported. “Day of the Month” is to be selected only if submitting weekly data.

  5. Data revisions are reflected in both current and historical time series. Reporters are strongly encouraged to report back revisions in time series in addition to updating the current template. Time series data are available at http://www.imf.org/external/np/sta/ir/IRProcessWeb/topic.aspx (selected items for all countries who reported on the Reserves Data Template) and at http://www.imf.org/external/np/sta/ir/IRProcessWeb/colist.aspx (all Reserves Data Template items in time series format for an individual country—click on the name of an individual country, and then click on “Time Series Data”).

  6. For items with a value of zero or near zero, the figure “0” should be entered. For items not applicable, the cells should be left blank.

  7. Inflows of foreign exchange should be reported as positive amounts. Outflows of foreign exchange should be reported as negative amounts, using a minus (–) sign.

  8. Countries are encouraged to provide additional information, such as country-specific exchange rate arrangements (e.g., the operation of a currency board or the implementation of dollarization), major sources of funding of reserve assets shown in Section I.A. of the Template, accounting treatment of certain financial transactions, information on pooled asset schemes, and specific treatment of the country’s financial transactions. The information is to be provided in text form, with the extension “txt” and marked “Country Notes.” The country notes are to be sent with the data submission (see also paragraph 42 of this document). Under the Reserves Data Template’s “stress test,” information on the value of “in-the-money” options can also be reported in the form of a graph.

  9. Item IV.(2), currency composition of reserves, should be disclosed at least once a year. Further, the amounts reported should be expressed as the value (and not as percentages) of reserve assets that are held in currencies in the SDR basket, and that are held in currencies that are not in the SDR basket. For this purpose, gold, SDRs, and Reserve Position in the Fund (RPF), should be considered to be denominated in SDR basket currencies. The total value of reserve assets held in SDR and non-SDR basket currencies shown in item IV.(2) should equal the amount shown in item I.A. Countries that want to disclose the composition by individual currency can do so by providing the information in the country notes (see item (8) above).

  10. To enhance data transparency, paragraph 84 (see Chapter 2 of this document) calls for the disclosure of the accounting treatment adopted by countries in the reporting of repos, securities lending, and related transactions. Detailed information of such accounting treatment is to be provided in country notes accompanying the data. In addition, to ensure data consistency across countries and to enhance the analytical usefulness of the information, item IV.(1)(d), “securities lent or on repo,” is to be reported with the following sign conventions: minus (–) signs for securities “lent or repoed and included in Section I” and “lent or repoed but not included in Section I,” and plus (+) signs for “borrowed or acquired and included in Section I” and “borrowed or acquired but not included in Section I.”

  11. As noted in paragraph 255 (see Chapter 5 of this document), gold swaps are to be treated similarly to repos. The gold that is swapped should be included, as appropriately, among securities lent or repoed in item IV.(1)(d). Gold swaps are also to be disclosed in country notes.

Appendix 6. Reserve Assets and Currency Unions

A6.1 The purpose of this appendix is to provide further methodological guidance for reserve assets in the circumstance where an economy is a member of a currency union (CU). This appendix draws primarily from Appendix 3 of BPM6, “Regional Arrangements: Currency Unions, Economic Unions, and Other Regional Statements.”

A6.2 The growth in the number of economies who are members of CUs, and, especially, the creation of the euro in the broader framework of the European Union, has led to an increased interest in questions about reserve assets of members of a CU. In particular, questions have arisen about how the methodological advice differs for economies that are residents versus nonresidents of a CU in regard to determining what is a domestic or foreign currency, what claims on nonresidents qualify for reserve asset treatment, and what are reserve-related liabilities. This appendix provides guidance on these and related topics.

What is a Domestic or Foreign Currency?

A6.3 From the viewpoint of national authorities of a currency union, the currency issued by the currency union has some characteristics of a foreign currency in that national authorities do not have the same degree of monetary autonomy as an economy that issues its own currency. Nonetheless, for members of a currency union, “the currency issued in a CU is the domestic currency of the CU. It should always be considered a domestic currency from the viewpoint of each member economy, even though the currency can be issued by a nonresident institution (either another CU national central bank (CUNCB) or the currency union central bank (CUCB))” (BPM6, paragraph A3.16).

A6.4 Reserve assets must be foreign currency assets (BPM6, paragraph 6.64). Claims denominated in the domestic currency are not reserve assets. According to BPM6, paragraph 3.95: “Domestic currency is that which is legal tender in the economy and issued by the monetary authority for that economy; that is, either that of an individual economy or, in a currency union, that of the common currency area to which the economy belongs. All other currencies are foreign currencies.”

A6.5 One consequence of the above is that, in a CU, from a national perspective, holdings of domestic currency can be a claim on a nonresident, but it cannot be a reserve asset.1

What Claims on Nonresidents Qualify for Reserve Asset Treatment?

A6.6 Reserve assets, other than gold bullion, must be claims on nonresidents (BPM6, paragraph 6.65). BPM6, paragraph A3.29, states: “Reserve assets shown in the balance of payments and International Investment Position of the CU should include only those assets that (a) represent claims on nonresidents of the CU and (b) meet the criteria described in Chapter 6. Also, the definition of the reserve assets at the CU level and at the member country level should be the same; in other words, with respect to national data, reserve assets should include only those assets that qualify as reserve assets at the CU level.”2 This approach to reserve asset treatment reflects that the policy decisions for a currency of a currency union are taken at the currency union, not national, level. This treatment is consistent with current practice in currency unions.

A6.7 The above guidance means that reserve assets for a member of a CU must meet all of the criteria for reserve asset treatment that must be met by an economy that is not a member of a CU, and—except for gold bullion—an additional criterion that only claims by a member of a CU on nonmembers of the CU can meet the criteria for reserve asset treatment. Foreign currency claims that meet all the criteria for reserve asset treatment but are claims on residents of the CU should be included in Section I.B. (other foreign currency assets, under the relevant financial instrument) of the Reserves Data Template.

Treatment of National Agencies in a Currency Union

A6.8 The statistical treatment of national agencies in a currency union has implications for the compilation of the Template at the member country and union level. BPM6 identifies two types of CUs, “centralized” and “decentralized.”

A6.9. In the centralized model, a CUCB is owned by the member economies, the common currency is issued by the CUCB, and central bank operations in each economy are carried out by a national (resident) authority. Typically, the CUCB maintains a national office in each member country that acts as the central bank for that economy and that, for statistical purposes, is treated as an institutional unit, located in that economy, and that is separate from the headquarters of the CUCB. (In the rare case where this is not the case, a national office institutional unit is to be created for statistical purposes, to record the central bank transactions and positions with the residents of the domestic economy.) In recording reserve assets at the national level, assets held by the CUCB on behalf of its member economies (including gold, reserve position in the Fund, SDRs, and, more generally, any foreign assets meeting the criteria for reserve asset treatment) that are assigned to a member economy in the accounts of the CUCB, are to be shown in the Reserves Data Template of the member economy. This model is of the type observed in Africa and the Caribbean.

A6.10. In the decentralized model, the CU comprises a CUCB and CUNCBs of the member economies, with the CUCB owned by the CUNCBs. (Thus, in this model, the CUCB is owned by the CUNCBs, whereas in the centralized model, the CUCB owns the monetary authority in each member economy.) In the decentralized model, in each economy, monetary activities with residents of the CU are carried out by national central banks having their own assets and liabilities. Where reserve assets are held by the CUNCBs (i.e., the assets are actually recorded on their balance sheets), the institutional setting may in certain circumstances result in some restrictions on the effective control over these assets by the CUNCBs. That is, CUNCBs may be able to transact in some of the reserve assets only with agreement of the CUCB. Provided there is no transfer of ownership to the CUCB, and the foreign assets owned by the CUNCBs can be mobilized by the CU to meet balance of payments needs (i.e., they are reserve assets of the CU), the lack of complete control due to operational constraints at the CU level should not preclude a CUNCB from classifying them as reserve assets in the national Reserves Data Template. This model type was developed by the euro area in the 1990s.

What are Reserve-Related Liabilities?

A6.11 BPM6, paragraph A3.30, states: “Similarly, liabilities classified as reserve-related liabilities in the national data should include only those liabilities that qualify as reserve-related liabilities at the CU level.” This means that, similar to the treatment of reserve assets (which includes selected claims on nonresidents of the CU and excludes all claims on residents of the CU), reserve-related liabilities should include selected liabilities to nonresidents of the CU and exclude all liabilities to residents of the CU.

A6.12 However, predetermined and contingent short-term net drains on foreign currency assets (reported in Sections II and III of the Reserves Data Template) should include the monetary authorities’ short-term foreign currency obligations to all counterparties, including to other economies in the CU, to economies outside the CU, and to residents of the same economy. This treatment is consistent with that for economies that are not in a CU (see paragraphs 141 and 180 of these Guidelines).

Appendix 7. Frequently Asked Questions on the Characteristics of Reserve Assets

A7.1 This appendix provides frequently asked questions (FAQs) to assist countries in identifying reserve assets under international standards, consistent with the recommendations of the sixth edition of the BPM6.

A7.2 BPM6, paragraph 6.64, defines reserve assets as follows: “Reserve assets are those external assets that are readily available to and controlled by monetary authorities for meeting balance of payments financing needs, for intervention in exchange markets to affect the currency exchange rate, and for other related purposes (such as maintaining confidence in the currency and the economy, and serving as a basis for foreign borrowing).”1

A7.3 To qualify for classification as a reserve asset, the asset must be:

  • a claim on a nonresident or in gold bullion of significant purity (BPM6, paragraph 6.65 and 6.78);

  • owned or under direct and effective control of the monetary authorities (BPM6, paragraph 6.67);

  • readily available in the most unconditional form (i.e., be liquid) (BPM6, paragraph 6.69)

  • denominated and settled in convertible foreign currencies that are freely usable for settlements of international transactions (BPM6, paragraph 6.72);

  • of high quality (in general) (BPM6, paragraph 6.70).

A7.4 Some elements of the definition of reserve assets can be applied objectively while others require informed judgment. For example, determining whether a claim is on a nonresident usually can be determined objectively. However, determining whether a claim is sufficiently liquid to qualify for reserve asset classification is partly judgmental.

A7.5 More guidance on the above characteristics, particularly on those that require judgment, is presented in the following FAQs.

Question 1: A reserve asset must be a claim on a nonresident or in gold bullion of sufficient purity. Are there any circumstances where foreign exchange-denominated claims of resident banks can be regarded as reserve assets?

A7.6 In accordance with the residence concept, reserve assets, other than gold bullion, must be claims on nonresidents (BPM6, paragraph 6.65).2 The authorities’ foreign currency claims on residents, including claims on resident banks, are not reserve assets.

A7.7 However, there may be cases where institutional units other than the monetary authorities (such as domestic banks) hold legal title to external foreign currency assets which are unencumbered, and such external assets can be considered reserve assets under the following conditions:

  • the resident entity can transact only in those claims with nonresidents on the terms specified by the monetary authorities or only with their express approval; and

  • the authorities have access on demand to these claims on nonresidents to meet balance of payments financing needs and other related purposes; and

  • a prior law or an otherwise legally binding contractual arrangement confirms this agency role of the resident entity that is actual and definite in intent.

A7.8 In the above circumstances, it is not the authorities’ claim on the resident bank that is included in reserve assets, but instead it is the resident bank’s claim on a nonresident that is regarded as a reserve asset, because the latter claim is under the direct and effective control of the monetary authorities.

A7.9 In the Reserves Data Template, liquid foreign currency claims on residents that do not meet the criteria for reserve asset treatment should be included in Section I.B. of the Template, “other foreign currency assets (specify).”

Question 2: A reserve asset must be readily available for meeting balance of payments financing needs. Some types of arrangements with the IMF, such as the Flexible Credit Line (FCL) and the Precautionary and Liquidity Line (PLL), are readily available for meeting balance of payments financial needs. Are these reserve assets?

A7.10 Paragraph 6.65 of BPM6 states that reserve assets must be foreign currency assets that actually exist. Contingent or potential assets, such as undrawn lines of credit, are not assets and so therefore they also are not reserve assets. Undrawn, unconditional credit lines should be recorded in Section III of the Reserves Data Template. As described in the Guidelines (paragraph 216), in general, IMF arrangements are conditional lines of credit and thus should not be included in Section III of the Template.

A7.11 The FCL has conditions for access that include qualification criteria that must be met before the credit line is approved. In FCL arrangements with a one year duration, once the qualification criteria are met, the member can draw down funds throughout the entire one-year period of the arrangement. In two-year FCL arrangements, however, continued access to resources during the second year is also subject to completion of a review. In light of the above, the undrawn amounts under one-year FCL arrangements should be included in Section III from approval to the maturity of the FCL arrangement. Undrawn amounts under two-year FCL arrangements should be included in Section III from approval up until the scheduled review date under the FCL.

A7.12 PLL arrangements have different phasing and conditionality depending on the duration of the arrangement and the member’s circumstances. However, all PLL arrangements of a six month duration are similar to the one-year FCL arrangements in that access to resources under such arrangements is subject to qualification criteria to be met before approval and once this is met, the member can draw down funds throughout the entire six-month period of the arrangement, with no other conditions applying for drawings after the approval of the arrangement. Therefore, undrawn amounts under six-month PLL arrangements should be included in Section III from approval to the maturity of the six-month PLL arrangement.

Question 3: The definition of reserve position in the IMF states that it includes “…any indebtedness of the IMF (under a loan agreement) in the General Resources Account that is readily available to the member country…” (BPM6, paragraph 6.85). What is the treatment when institutional units or parts of members (such as a central bank or a ministry of finance) holds the claim on the IMF, rather than the (entire) member country itself?

A7.13 In some circumstances, an institutional unit or part of a member may provide financing to the IMF’s GRA under bilateral loan agreements, notes, or participation in standing borrowing arrangements such as the GAB or NAB. In these circumstances, the claim on the IMF held by the institutional unit on part of the member that results from drawing under these instruments should be included in the reserve position in the IMF provided that it is readily available to the member country at the time that the member represents that it has a balance of payments need.

Question 4: Reserve assets must be readily available for meeting a balance of payments financing need. Can you clarify what this means? For example, if an external claim can be sold for a reserve asset, with settlement of the transaction occurring within a few weeks, is the claim sufficiently liquid to qualify as a reserve asset?

A7.14 The IMF does not specify a firm time period for meeting the reserve asset “readily available” requirement. The IMF has received questions from members over many years regarding specific external claims (i.e., claims on nonresidents) that are held by its members. In reply to these questions, the IMF has said that, if an external claim can be converted into a reserve asset currency to meet a balance of payments need only within several weeks, that is not sufficiently rapid for the external claim to qualify as a reserve asset, in consideration of the speed at which balance of payments crises could develop. Further, provided reserves are available at very short notice for times when they are needed most, the IMF has also said, the external claim that can be converted into a reserve asset currency to meet a balance of payments need within a few days could meet the readily available requirement.3

Question 5: We have seen the terms usable currencies, freely usable currencies, and convertible currencies used from time to time. Can you clarify the definitions of these terms? In particular, does the IMF maintain lists of each?

A7.15 Currently the IMF does not maintain a list of convertible currencies. In 1978, the Second Amendment of the IMF’s Articles of Agreement entered into effect and the concept of “convertible currencies” was replaced by the term “freely usable currency,” which is defined in the Articles of Agreement.

A7.16 In regard to the definition of a freely usable currency, Article XXX of the Articles of Agreement of the IMF provides, in paragraph (f), that “A freely usable currency means a member’s currency that the Fund determines (i) is, in fact, widely used to make payments for international transactions, and (ii) is widely traded in the principal exchange markets.” At present, the currencies determined to be “freely usable” are those specified as such under Executive Board Decision No. 11857-(98/130) of December 17, 1998, which says that “Pursuant to Article XXX (f), and after consultation with the members concerned, the Fund determines that, effective January 1, 1999 and until further notice, the euro, Japanese yen, pound sterling, and US dollar are freely usable currencies.”

A7.17 In addition, for Fund GRA operations, a usable currency is a member’s currency used in the IMF’s Financial Transactions Plan (FTP). The inclusion of a currency in the FTP is based on judgments about the external positions of members and the currencies so included extend beyond those determined to meet the “freely usable currency” criterion under Article XXX (f) of the IMF’s Articles of Agreement. The most current list is available at: http://www.imf.org/cgi-shl/create_x.pl?ftp. Please note that this is a list of “usable” foreign currencies, whereas reserve assets must be denominated and settled in a “freely usable” foreign currency.

A7.18 For the recording of reserve assets, BPM6 states that “reserve assets must be denominated and settled in convertible foreign currencies, that is, currencies that are freely usable for settlement of international transactions” (BPM6, paragraph 6.72). Such currencies potentially extend beyond those currencies determined to meet the “freely usable currency” criterion under Article XXX (f) of the IMF’s Articles of Agreement. Countries are required to disclose at least once each year the composition of reserves by groups of currencies (item IV.(2)(a) of the Reserves Data Template). The overwhelming majority (well over 95 percent at the present time) of reserve assets reported in the Reserves Data Template are denominated in the freely usable currencies determined by the Fund under Article XXX (f) (i.e., the currencies currently included in the SDR basket).

Question 6: Reserve assets should be of high quality. Can you explain what “high quality” means?

A7.19 BPM6, paragraph 6.70, clarifies that “To be readily available to the authorities to meet balance of payments financing needs and other related purposes under adverse circumstances, reserve assets generally should be of high quality.” The BPM6 discussion implies that securities included in reserve assets should generally be of high investment grade, because such securities can be converted to a freely usable foreign currency under adverse circumstances without substantial delay or loss in market value. As noted in paragraph 89 of these Guidelines, countries should indicate in notes accompanying the release of their data if reserve assets include securities below investment grade.

Question 7: What is the difference between nominal and notional value?

A7.20 According to BPM6, nominal value refers to the outstanding amount the debtor owes to the creditor, which is composed of the outstanding principal amount including any accrued interest. So the nominal value reflects the sum of funds originally advanced, plus any subsequent advances, plus any interest that has accrued, less any repayments (which includes any payments covering interest accrual). Nominal value in domestic currency of a debt instrument denominated in foreign currency also includes holding gains or losses arising from exchange rate changes. Nominal value for a derivative instrument is the amount underlying the contract that is to be exchanged—such as in a foreign exchange swap. On the other hand, the notional value of a financial derivative instrument is the amount that is used to calculate payments made on that instrument. This term is used commonly in the options, futures, and currency markets, where settlement payments are based on principal that may not be exchanged.

Question 8: What is the difference in treatment between a repurchase agreement (repo) and a swap?

A7.21 Under the international statistical standards, repurchase agreements (repos) and swaps should be recorded in the following ways.

A7.22. Repos: A repo should be treated as a collateralized loan. The cash that a borrower receives under the repo should be included in its international investment position (IIP), and should be included in reserve assets if it involves a freely usable currency. In addition, the borrower should record a loan payable (predetermined drain), representing its requirement to return the cash (and interest) at a stated future time.

A7.23 To consider the recording of the securities from the perspective of the cash borrower under the repo, the securities should be assessed against the criteria for reserve asset treatment and, if they are not liquid or readily available for meeting balance of payments financing needs (or are available for meeting balance of payments financing needs only if a substitute reserve asset has to be provided as collateral), they should be excluded from the cash borrower’s reserve assets. Nonetheless on practical grounds, the cash borrower may continue to record the securities in reserve assets, and BPM6 allows for this possibility (paragraph 6.88)

A7.24 Analogously, the cash lender has exchanged cash for a loan receivable or deposit. The loan receivable or deposit should be assessed against the criteria for reserve asset treatment and, if it is not liquid or not readily available for meeting balance of payments financing needs, it should be excluded from the lender’s reserve assets. Thus, a predetermined inflow should be recorded that indicates a loan receivable. The securities that are obtained by the lender should always be excluded from the lender’s reserve assets. This is because the securities are collateral for the loan. The economic ownership of the securities continues to be with their original owner, not the cash lender, and therefore the securities should not be recorded in the IIP of the cash lender. As the securities are not recorded in the IIP of the cash lender, as noted above, they also should not be recorded in reserve assets of the cash lender, because reserve assets are a subset of the IIP.

A7.25 Swaps: Swaps take a variety of different forms. In the case where one or both counterparties receive cash, the recipient of the cash should include the cash in its IIP, and, similar to the treatment of cash under repos, the cash should be included in reserve assets if it involves a freely usable currency (but not the domestic currency of the holder).

A7.26 In the case where the swap involves the provision of securities for cash, sometimes the initiator of the swap pays interest to its counterparty, in which case the swap should be recorded as a collateralized loan or repo.

A7.27 Reciprocal currency arrangements are short-term arrangements (reciprocal credit lines) that allow the counterparties temporary access to the foreign currencies they may need. When credit lines are drawn, a swap transaction takes place, involving an immediate delivery transaction (in which case a counterparty draws cash and, in exchange, provides securities or cash as collateral), and a simultaneous forward (future delivery) commitment, in which the two counterparties agree to reverse the transaction at a specified date in the future. As noted above, in the case where one or both counterparties under any of the various forms of swaps receive cash, the recipient of the cash should include the cash in its IIP, and the cash should be included in reserve assets of its holder(s) if it involves a freely usable currency (but not the domestic currency of the holder(s)). In the case where securities are provided as collateral for the swap, it is recommended that the swap be recorded as a collateralized loan. See paragraphs 212–213 for additional detail on the recording of reciprocal currency arrangements.

A7.28 In the case of a gold swap, gold is exchanged for cash and a firm commitment is made to repurchase the gold at a future date. Although accounting practices for gold swaps vary among countries, for purposes of the Reserves Data Template, it is recommended that a gold swap be treated the same way as a collateralized loan or repo. Thus, the cash lender within the gold transaction should not include the gold in its IIP and in its reserve assets.

A7.29 Gold deposits of monetary authorities representing claims on nonresidents are to be included in gold and not in total deposits (assuming the gold is available upon demand to the monetary authority and is of high quality). With gold deposits and gold swaps, the original owner of the gold retains the risks and rewards of changes in the price of the asset. Accordingly, there is considered to be no change of economic ownership of the gold, so no transaction in gold is recorded.

Appendix 8. Statistical Treatment of Lending to the IMF, Lending to IMF Managed Trusts, and Special Drawing Rights

A8.1 The Appendix aims at clarifying the statistical treatment of lending to the IMF, lending to IMF managed trusts, and Special Drawing Rights (SDRs) in the Reserves Data Template. In these cases, the IMF is actively engaged as a principal, manager, or administrator of positions or transactions.

Background

A8.2 In response to the financial crisis and following a call by the International Monetary and Financial Committee (IMFC) in April 2009, the IMF took a number of actions aimed at substantially increasing its lending resources. In addition, the IMF put in place two new SDR allocations that totaled about $283 billion. Further, the IMF took steps to promote the liquidity of loans to IMF managed trusts that thereby made such loans suitable for classification as reserve assets.

A8.3 While permanent increases in IMF resources have traditionally been achieved through increases in quotas, borrowing has been used to bridge the time gap between seeking and gaining IMF membership approval of a general quota increase. In 2009, the IMF developed Note Purchase Agreements as a new form of borrowing arrangements to augment its lending capacity; and entered into a number of new Bilateral Loan Agreements. In addition, the IMF executive board approved a new concessional financing framework under which a new Poverty Reduction and Growth Trust (PRGT) replaces the PRGF-ESF Trust. The statistical treatment in the Reserves Data Template of the new borrowing through loans and notes with the IMF, of loans to IMF managed trusts including the PRGT, of commitments and drawings under the New Arrangements to Borrow (NAB) and the General Arrangements to Borrow (GAB), and of SDRs is discussed below.

Bilateral Loan Agreements with the IMF

A8.4 A Bilateral Loan Agreement (BLA) is an agreement under which an IMF member commits to lending funds, usually in its domestic currency, up to an agreed limit, to the IMF, upon demand by the IMF. The creation of the BLA, by itself, is not a claim, and so it should not be reported in Section I of the Reserves Data Template, but it can give rise to claims that may qualify for reserve asset treatment (see section on Loans under a Bilateral Loan Agreement with the IMF below).

A8.5 As noted, under a BLA, the IMF may require a member to lend domestic currency to the IMF at short notice. In exchange for these funds, the member would obtain a claim on the IMF denominated in SDRs. When the BLA is executed, a contingent claim is created. Similar to the treatment of commitments by countries to the IMF under the GAB and NAB (see paragraph 214 of these Guidelines), this contingent claim should not be reported as a contingent short-term negative net drain (nominal value) in Section III.4 of the Reserves Data Template. This is because Section III.4 of the Reserves Data Template covers contingent decreases in reserve assets resulting from undrawn, unconditional credit lines provided to the IMF (inter alia) and, in contrast, the execution of a BLA may result in an increase in reserve assets, which is not covered in this item.

Loans under a Bilateral Loan Agreement with the IMF

A8.6 In order for a loan that is created under a BLA with the IMF to meet the definition of a reserve asset, the claim must be readily available to meet a balance of payments financing need. This condition would be met if the IMF will repay the loan, or someone stands ready to purchase the original lender’s claim on the IMF, within a very short period, through the existence of a liquid market, such as market makers who stand ready to buy and sell at all times. In addition, all of the preceding transactions must involve (or be capable of involving) a freely usable currency (other than the member’s own currency). In this circumstance, the loan that is created under a BLA should be recorded in item I.A.2 of the Reserves Data Template, Reserve Position in the Fund (RPF).1

A8.7 If the loan can be repaid over a protracted period (some loan agreements might allow repayment up to one year), or does not allow repayment in a reserve asset currency, the loan does not qualify as a reserve asset and there are no entries in the Reserves Data Template.

Note Purchase Agreements with the IMF

A8.8 A Note Purchase Agreement (NPA) is an agreement under which an IMF member commits to purchase an IMF promissory note from the IMF on demand, up to an agreed limit. The creation of the NPA, by itself, is not a claim, and so it should not be reported in Section I of the Reserves Data Template, but it can give rise to claims that may qualify for reserve asset treatment (see Section E below).

A8.9 As noted, under a NPA, a contingent claim is created under which the IMF can require a member to purchase an IMF promissory note at short notice. In exchange for these funds, the member would obtain a claim on the IMF. Similar to the treatment of commitments by countries to the IMF under the GAB and NAB (see paragraph 214 of these Guidelines), this contingent claim should not be reported as a contingent short-term negative net drain (nominal value) in Section III.4. of the Reserves Data Template. This is because Section III.4. of the Reserves Data Template covers contingent decreases in reserve assets resulting from undrawn, unconditional credit lines provided to the IMF (inter alia) and, in contrast, the execution of a NPA may result in an increase in reserve assets, which is not covered in this item.

Series A and Series B Notes

A8.10 Two classes of notes were designed under the NPAs, Series A and Series B. These notes are identical, with the exception that Series A notes are eligible for immediate early repayment if the member country declares that it requires repayment due to a balance of payments financing need (the IMF would give such declarations the overwhelming benefit of doubt). Series A notes meet the liquidity criterion for classification as a reserve asset. Holdings of Series A notes should be recorded in item I.A.2 of the Reserves Data Template, Reserve Position in the Fund (RPF). This classification reflects that these notes are claims on the IMF that meet all criteria for recording as reserve assets.

A8.11 Series B notes are encashable as soon as practicable within 12 months of recognition of a balance of payments need. Holders of these notes therefore are not assured that the notes will be encashed promptly at the time of a balance of payments financing need, and so these notes do not meet the statistical definition of official reserve assets, and are not recorded in the Reserves Data Template.2

Loans to IMF Managed Trust Accounts

A8.12 Lending to IMF managed trust accounts, such as the PRGT, if readily available to meet a balance of payments financing need, should be included in official reserve assets, in item I.A.5 of the Reserves Data Template (other reserve assets). These claims are not classified in item I.A.2, RPF, because claims on IMF managed trusts are not claims on the IMF General Resources Account. Lending to IMF managed trusts that is not readily available to meet a balance of payments financing need does not qualify as an official reserve asset and should not be reported in the Reserves Data Template.

Commitments and Drawings under the General Arrangements to Borrow and under the New Arrangements to Borrow

A8.13 The General Arrangements to Borrow (GAB) are long-standing credit arrangements under which 11 advanced economies stand ready to loan domestic currency to the IMF for the purpose of forestalling or addressing situations that could impair the international monetary system. The New Arrangements to Borrow (NAB) are a set of credit arrangements with selected member countries, which stand ready to lend to the IMF.3

A8.14 A contingent claim results from participation in the NAB or GAB, equal to the undrawn amount of credit. However, consistent with paragraph 214 of these Guidelines, this contingent claim should not be reported as a contingent short-term negative net drain (nominal value) in Section III.4. of the Reserves Data Template. This is because Section III.4. of the Template covers contingent decreases in reserve assets resulting from undrawn, unconditional credit lines provided to the IMF (inter alia) and, in contrast, commitments under the GAB and NAB may result in increases in reserve assets, which are not covered in this item.

A8.15 As noted, the IMF may require a member who participates in the NAB or in the GAB to lend to the IMF at short notice. When funds are lent, the member obtains a claim on the IMF that qualifies as a reserve asset and which should be reported in Section I.A.2 of the Reserves Data Template.

Treatment of SDRs

A8.16 This section clarifies the statistical treatment of Special Drawing Rights (SDRs), as relevant for reporting in the Reserves Data Template. It is consistent with recommendations in BPM6 and 2008 SNA, although the main changes introduced by these new methodological standards do not affect reporting in the Reserves Data Template.4

A8.17 SDR holdings are recorded in official reserve assets in Section I.A. of the Reserves Data Template, and interest on SDR holdings and allocations are recorded in predetermined net drains in Section II.1.

Allocations and Holdings of SDRs

A8.18 Under BPM6 and the 2008 SNA, holdings of SDRs by an IMF member are recorded as claims in official reserve assets, and allocations of SDRs are recorded as long-term debt liabilities.5 For an economy that received SDRs, the claims are on, and the liabilities are owed to, the other participants of the IMF’s SDR Department collectively.

A8.19 Only IMF members as SDR Department participants and other official holders (so-called prescribed holders) can hold SDRs.6 The SDR position of a member is shown in the balance sheet of the monetary authorities. Holdings of SDRs should be recorded in the item “SDRs” in Section I.A.(3), because the Reserves Data Template captures holdings of reserve assets by monetary authorities, and all monetary authority holdings of SDRs are reserve assets. Interest that accrues on SDRs should be reflected in Section II of the Reserves Data Template (see below), but unless a member has a set date to repay the SDR allocation, no predetermined drains are recorded under principal because allocations of SDRs have no fixed maturity date.

Accrual of SDR Interest

A8.20 Interest on SDR holdings and allocations7 accrue on a daily basis and are settled after the end of each financial quarter (on May 1, August 1, November 1, and February 1) through a debit or credit to each member’s SDR account. On these dates, interest that is payable on SDR allocations is netted against interest that is receivable on SDR holdings of the participant in the SDR Department, and the net amount is settled through this debit or credit entry.

A8.21 Under BPM6, interest is reinvested in the same financial instrument in which it accrued, and so it can be argued that the level of SDR holdings in Section I of the Reserves Data Template should increase as interest accrues and is not yet paid.8 However, SDR holdings are reserve assets, and reserve assets are defined to be readily available for meeting balance of payments financing needs. Accrued interest on SDR holdings may not be readily available at the time of a balance of payments financing need, particularly in the circumstance where allocations exceed holdings because, as described above, interest on SDR holdings and allocations is settled only once a quarter, and interest on SDR holdings are netted against interest on SDR allocations at settlement.

A8.22 For this reason, the preferred method of reporting accrued interest in the Reserves Data Template is as follows. Interest that has accrued on SDR holdings may be omitted from Section I of the Template, and in Section II.1, interest, the net amount of interest receivable or payable by an economy in future periods should be recorded, either as a predetermined short-term drain outflow (if negative) or inflow (if positive).9 Alternately, it remains acceptable to include interest that has accrued on SDR holdings up to the Reserves Data Template reporting date in Section I. In this case, the gross amount of future interest payable on SDR allocations should be reported in Section II.1 as outflows of interest. (There is no entry in Section II.1 for future inflows of interest on SDR holdings, because Section II pertains to assets of the authorities not covered in Section I of the Template—see paragraph 140 of these Guidelines.)

A8.23 Table A8.1 presents a summary of the recording in the Reserves Data Template of lending to the IMF, lending to IMF managed trusts, and SDRs.

Table A8.1

Summary of Recording in the Reserves Data Template

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Index

Entries refer to corresponding paragraph numbers within the text.

  • A

  • American-style options, 222, 224, Box 4.2

  • Amortization schedules, 140, 142, 152

  • Asset-backed securities

    • predetermined drains, 162

  • Authorities. See Monetary authorities

  • B

  • Bank for International Settlements

    • credit lines, 211–212, 216, 218

    • deposits held in, 92, 114

    • short-term loans to, 93

  • Bankers’ acceptances, 79, 163

    • predetermined drains, 163

  • Banks. See also Financial institutions, 21, 171, 195, 197, 246

    • coverage, 219, 220

    • defined, 92

    • deposits held in, 92, 106–107, 114, Box 1.1

    • headquartered, 106–109, 125

    • resident, 60, 114, A7.6, A7.7

  • BIS. See Bank for International Settlements

  • Black-Scholes formula, 269

  • Bonds

    • predetermined drains, 162

    • U.S. Treasuries, 79

    • debt securities, 162

    • puttable, 199–205

  • Bought calls, 223, A4.8, Box 4.1

  • Bought options, 182

  • Bought puts, 223, A4.8, Box 4.1

  • Branches of financial institutions, 61,104–105, 108, 114

  • Building societies

    • deposits held in, 92

  • Bullet, 201 (footnote)

  • Bullion banks, 99

  • Buybacks

    • reporting securities in Reserves Data Template, 81

  • C

  • Call options, Box 4.1

  • Central banks

    • credit lines, 211–213

  • Central government

    • coverage in Reserves Data Template, 16, 20, 21

    • defined, 22

  • Certificates of deposit, 79, 92

    • predetermined drains, 162–163

  • CGFS. See Committee on the Global Financial System, 3

  • Closure netting, 150

  • Collateral guarantees, 191, 193–195

  • Collateralized loans, 84–85, 100

  • Collateralized mortgage obligations

    • predetermined drains, 162

  • Commercial banks

    • deposits held in, 92

  • Commercial paper

    • predetermined drains, 79, 163

  • Committee on the Global Financial System

    • Reserves Data Template development, 4, A1.5

  • Contingent liabilities, 191–198

  • Contingent net drains, 48, 180–190, A6.12

  • Contractual obligations, 24, 138, 180, 191, 196

  • Convertible bonds

    • predetermined drains, 162

  • Convertible foreign currencies, 67, 75, 119, 214, 248, A7.3, A7.15, A7.18

  • Cooperatives

    • deposits held in, 92

  • Counterparty claims, 107–108

  • Country notes. See Reserves Data Template

  • Credit events, 202

  • Credit lines, 206–221

  • Credit unions

    • deposits held in, 92

  • Cross default/cross acceleration clauses, 203

  • Currencies

    • market valuation, 133

    • reporting in Reserves Data Template, 37, 67, 77, 94, 113

  • Currency liquidity. See Foreign currency liquidity

  • Currency swaps. See Foreign exchange swap, 173

  • Currency unions, 10, 21, 57, Appendix 6

  • D

  • Data template. See Reserves Data Template.

  • Debentures, 79 (footnote)

    • predetermined drains, 162

  • Debt securities

    • market valuation, 132

    • predetermined drains, 162, 165

    • reporting on Reserves Data Template, 79

  • Default, 99, 150 (footnote), 193, 202, 257

  • Demand deposits, 65, 91

  • Deposit-taking corporations, 92

  • Deposit insurance, 195

  • Deposits

    • in banks headquartered in and outside of the reporting country, 107

    • foreign currency reserves, 77

    • market valuation, 133

    • “on call,” 161

    • reconciling BPM6 concept of reserves and Reserve Data Template, 114

    • reporting in Reserves Data Template, 91–95

  • Diamonds, 98

  • Discounted bonds

    • predetermined drains, 162

  • Discrete puts, 202

  • Domestic currency,

    • currency union, A6.3

  • Domestic currency debt, 25

    • coverage, 237

    • indexed to foreign currency, 49

    • short-term, 242

  • Dual-currency bonds

    • predetermined drains, 162

  • E

  • Equity securities

    • market valuation, 131

    • reporting on Reserves Data Template, 79

  • European options, 222, Box 4.2

  • Exchange rates, 30, 130, 136–137, 146–147, 167, 232–233, 237, 240, 242, A4.2, A4.6, A4.9, A4.10

  • Exercise dates, 224, Box 4.2

  • Exercise price. See Strike price

  • External assets, 5, 9, 16, 59, 62–64, 69, 109, 122, 158, A7.2, A7.7

  • External liabilities, 9, 153–158

  • F

  • Federal National Mortgage Association (Fannie Mae), 191

  • Financial derivatives assets

    • activities, 26–31

    • hard puts, 203

    • market valuation, 134, 259–270

    • reporting of, 26–31, 34, 102, 167–177, 222–235, Box 4.1, 245–150, 259–272, Appendix 3 (items 13–16)

    • with residual maturity of greater than one year, 271–272

  • Financial institutions

    • branches and subsidiaries, 104–105, 108, 114

    • credit lines with, 211–221

    • deposits held in, 92

    • headquartered abroad but located in the reporting country, 95, 105

    • headquartered in the reporting country, 103–104

    • headquartered in the reporting country but located abroad, 104

    • headquartered outside the reporting country, 103, 105

    • reserve assets in resident financial institutions, 60

  • Financial instruments

    • denominated in foreign currency and settled by other means, 237, 241, 243–250

  • Financing agreements, 211

  • Floating-rate bonds

    • predetermined drains, 162

  • Flows

    • Reserves Data Template section reported in, 46, 49

    • foreign currency, 31, 33, 36, 39

  • Foreign currency assets. See also Official reserve assets; Other foreign currency assets

    • contingent liabilities, 191–198

    • contingent net drains, 180–190

    • convertible, 67

    • defined, 59

    • defining predetermined drains, 138–143

    • deposits in resident banks, 60, 107–108, 114, A7.6

    • disclosing, 59–63

    • external assets, 62

    • options, 222–235

    • ownership, 68, 87–89

    • predetermined drains, 138–152

    • reserve assets, 65–67

    • securities with embedded options, 199–205

    • undrawn, unconditional credit lines, 206–221

  • Foreign currency deposits, 42, 61–62, 125, 140, 161, 195, 197

  • Foreign currency flows (drains)

    • associated with loans and securities, 153–166

    • other predetermined drains, 178–179

    • relating to forwards, futures, and swaps, 167–177

  • Foreign currency liquidity

    • concepts for Reserves Data Template, 15–19

    • data deficiencies, 1, Box 1.1

    • Reserves Data Template for, 4–8

    • importance of timely disclosure, 2

    • instruments included in resources and drains, 24

    • linkages with international reserves concepts,19

    • off-balance-sheet activities, 5

  • Foreign currency loans, 93, 102, 146, 161, 197

  • Foreign currency reserves deposits, 77

    • reconciling BPM6 concept of reserves and Reserves Data Template, 116

    • reporting in Reserves Data Template, 77–78

    • securities, 77, 109

    • as type of reserve asset, 75

  • Foreign exchange assets

    • defined, 77

    • reconciling BPM6 concept of reserves and Reserves Data Template, 112

    • swap agreements, 73

    • as type of reserve asset, 12, 75

  • Foreign exchange guarantees, Box 1.1, 181, 195

  • Foreign exchange swaps, 167, 170, 173

  • Forward contracts, 134, 170–172, 245

  • Forward transactions, 212

  • Forwards, 26–27, 34, 48, 50, 102, 138, 140, 146, 167–177

  • Freely usable currency, A7.15–18, A7.25, A7.27, A8.6

  • Futures, 102, 134, 167–177

  • Futures contracts, 134, 138, 171–175, 270

  • G

  • GAB. See General Arrangements to Borrow

  • General Arrangements to Borrow

    • commitments to the IMF, 214, A7.13, A8.3, A8.5, A8.9, A8.13, A8.14, A8.15, A8.23

    • reserve position, 96

  • Gold

    • allocated, 98

    • purity, 98, 125, A7.3

    • reconciling BPM6 concept of reserves and Reserves Data Template, 112

    • reporting in Reserves Data Template, 67, 72, 98–101

    • swaps. See Gold swaps.

    • as type of “other foreign currency asset,” 125

    • as type of reserve asset, 12, 75–76

    • unallocated, 98–99

    • valuation, 135

  • Gold deposits

    • reporting in Reserves Data Template, 75, 98–99

  • Gold on loan, 99

  • Gold swaps, 81, 100–101, 178, 255, A5.16, A7.28–29

  • Group of Ten Committee on the Global Financial System, 3

  • Guarantees, 5, 181, 191–195

    • collateral 193–195

    • government, 48, 53

  • H

  • Hard puts, 203

  • I

  • IIP. See International investment position

  • IMF. See International Monetary Fund

  • IMF Managed Trust Account, 57, 70, 93, 102, 215, A8.12, A8.23

  • Immediate delivery transactions, 212, A7.27

  • In-the-money options, 31, 57, 225–226, 228, 231–235, 247, Box 4.2

  • Indexed bonds

    • predetermined drains, 162

  • Indexed securities, 244

  • Inflows

    • Reserves Data Template section reported in, 46, 50, 52

    • predetermined drains, 139–140, 145, 148, 150–151, 166, 179

  • Institutions. See Financial institutions

  • International financial architecture

    • data deficiencies, 1

    • development of framework, 3

    • financial activities covered by Reserves Data Template, 24–25

    • institutions covered by Reserves Data Template, 20–23

    • international reserves concepts, 9–14

    • reporting and dissemination considerations, 37–44

    • structure of Reserves Data Template, 45–50

    • structure of Guidelines, 51–57

    • Reserves Data Template for, 4–8

    • time horizon, 35–36

    • valuation principles, 32–34

  • International investment position, 77, 117, Table 2.1, 154–158

  • International Monetary Fund

    • flexible credit line (FCL), 216, A7.2, A7.10–11

    • loans to, 70, A8.6–7, A8.23

    • note purchase agreement, 215, A8.3, A8.8–9

    • precautionary and liquidity line (PLL), 216, A7.10, A7.12

    • Reserves Data Template Guidelines development, 3

    • reserve position. See Reserve position in the IMF

    • short-term loans to, 93

  • International reserves

    • concepts for Reserves Data Template, 8–14

    • concepts, 19

    • “controlled by” concept, 11, 13, 20, 22, 59

    • data deficiencies, 1

    • data template for, 4–8

    • defined, 9

    • linkages with foreign currency liquidity

    • “readily available” concept, 11, 13, A7.14

    • residency concept, 10

  • Internet

    • dissemination of data, 43

  • L

  • Latin American Reserve Fund (LARF). See Regional pooling arrangements

  • Letters of credit, 197

  • Lines of credit, 73, 206–221

  • Liquidity. See Foreign currency liquidity

  • Loans

    • guarantees, 195

    • pledged assets, 49, 54, 72, 118, 237, 251

    • predetermined drains, 149, 153–154, 159–161

    • reserve assets, 70

    • short-term, 93, 102, 160–161

  • Local governments

    • exclusion from central government, 22

  • Long leg, 173

  • Long positions, 28, 38, 150, 177, 182, 186, 222–230, Box 4.1

  • Long-term loans, 70, 102, 152, 160

  • M

  • Margin, 256

  • Marked-to-market values. See Net, marked-to-market values

  • Market valuation

    • of currency, 133

    • of deposits, 133

    • of financial derivatives, 134, 259–270

    • of monetary gold, 135

    • of reserve assets, 117, 128–130

    • of reserve position in the IMF, 137

    • of securities, 131–132

    • of special drawing rights, 136

  • Marketable assets, 65

  • Marking to market, 134, 260

  • Memo items. See Memorandum items

  • Memorandum items

    • coverage of, 236–241

    • currency composition of reserves, 273

    • financial derivatives assets, 259–270

    • financial derivatives with residual maturity of greater than one year, 271–272

    • financial instruments denominated in foreign currency and settled by other means, 243–250

    • pledged assets, 251

    • reporting of, 25

    • repurchase agreements, 252–258

    • securities lent, 252–258

    • short-term domestic currency debt, 242

    • Special Data Dissemination Standard, Appendix 1

  • Monetary authorities

    • claims on nonresidents, 69

    • coverage in Reserves Data Template, 20

    • defined, 21

    • loans provided by, 70

    • ownership of reserve assets, 68

    • pledged assets, 72

    • real estate ownership, 74

    • reverse repos, 86–87

    • transfers of foreign currency claims, 71

  • Monetary gold. See Gold

  • N

  • NAB. See New Arrangements to Borrow

  • National agencies, A6.8–10

  • NDFs. See Nondeliverable forwards

  • Negotiable certificates of deposit

    • predetermined drains, 78, 162–163

  • Net, marked-to-market values

    • financial derivatives activities, 29, 259–270

    • reporting in Reserves Data Template, 50, 102

    • as type of “other foreign currency asset,” 125

  • Net drains, 15, 139, 180–190

  • Net international reserves, 17

  • Netting by novation, 102, 150, 260, 263

  • New Arrangements to Borrow

    • commitments to the IMF, 96, 214, A7.13, A8.3, A8.5, A8. 9, A8.13–15, A8.23

    • reserve position, 96

  • Nondeliverable forwards, 26, 34, 176, 245–250

  • Nonparticipating preferred stocks

    • predetermined drains, 162

  • Nonresidents

    • claims of the monetary authorities, 69

    • foreign currency securities issued by, 79

    • loans to, 70, 75

    • reconciling BPM6 concept of reserves and Reserves Data Template, 60, 116, Table 2.1

  • Notes (debt instruments)

    • predetermined drains, 162, 174

    • loans to the IMF, A7.13, A8.3, A8.10–11, A8.23 (table)

  • Notional values, 31, 34, 50, 53–54, 188, 223, 225, 227, 272

    • definition A7.20

  • O

  • Off-balance-sheet activities, 5, 16, 138, Box 1.1

  • Official reserve assets. See also Other reserve assets

    • currency composition of, 273

    • defined, 59, 64

    • deposits, 92

    • disclosing, 58–63

    • exclusion of pledged assets, 72

    • external assets, 62, 69

    • financial instruments, 75

    • foreign currency assets, 66–67

    • loans, 70

    • market valuation, 117, 128–130

    • marketable assets, 65

    • ownership, 68

    • “readily available” assets, 65, A7.10–12

    • reconciling BPM6 concept of reserves and Reserves Data Template, Table 2.1, 110–117

    • reserve assets as, 14

    • residency concept, 69

  • On-balance-sheet obligations, 138

  • Options

    • contracts, 5, 181, 190, 237

    • definitions of terms, 228

    • in-the-money options, 231–235

    • long positions, 222–230

    • market valuation, 272

    • notional values, 222–223, 225, 227

    • short positions, 222–230

    • as type of “other reserve asset,” 102

  • OTC instruments. See Over-the-counter instruments

  • Other foreign currency assets

    • defined, 59, 118–127

    • market valuation, 128–129

    • reporting of, 62

  • Other reserve assets

    • reporting in Reserves Data Template, 102

    • short-term foreign currency loans, 93

  • Out-of-the-money options, 247, Box 4.2

  • Outflows

    • predetermined drains, 139–140, 145, 148–151,179

    • Reserves Data Template section reported in, 46, 50

  • Over-the-counter instruments, 171, 245

  • P

  • Participation certificates

    • predetermined drains, 162

  • Pledged assets, 49, 54, 72, 118, 237, 243, 251

  • Position data, 38

    • Reserves Data Template section reported in, 46

  • Positions

    • Reserves Data Template section reported in, 46, 49

  • Post office savings banks

    • deposits held in, 92

  • Precious metals and stones, 98

  • Predetermined drains

    • associated with loans and securities, 159–166

    • defining, 138–143

    • examples, 48

    • other predetermined foreign currency flows, 178–179

    • relating to forwards, futures, and swaps, 167–177

    • relating to money market instruments, 163–165

    • relating to nonparticipating preferred stocks, 162

    • reporting data, 144–152

    • unlike data on external liabilities, 153–158

  • Prevailing market price. See Valuation principles

  • Pro Memoria section. See Reserves Data Template

  • Public debt securities

    • predetermined drains, 165

  • Put options, 182, 199, 200, 202–203, 234, Box 4.1

  • Puttable bonds, 190, 199–205

  • Q

  • Quality of reserves, 89, A7.19

  • R

  • Real estate

    • owned by monetary authorities, 74

  • Reciprocal currency arrangements, 27, 211–212

  • Reference date, 6, 32, 38, 58, 129–132, 144, 146–147, 158, 267

  • Regional pooling arrangements, 216

  • Remaining maturity. See Residual maturity

  • Repos. See Repurchase agreements

  • Repurchase agreements, Box 1.1

    • defined, 82

    • differentiating from reserve assets, 72

    • predetermined drains, 151, 178

    • reporting securities in Reserves Data Template, 81, 84–86, 102, 252–258, 210, 241, A7.21–24

  • Reserve assets. See International reserves; Official reserve assets; Other reserve assets

  • Reserve position in the IMF

    • defined, 96

    • market valuation, 137

    • reconciling BPM6 concept of reserves and Reserves Data Template, 96, 112, Table 2.1

    • as type of reserve asset, 12, 75–76

  • Reserve related-liabilities, 9, A6.2, A6.11–12

  • Reserve tranche, 96

  • Reserves Data Template

    • country notes, 20, 39, 42, 58, 71, 81, 84, 88, 89, 106, 108, 109, 127, 175, 176, 191, 194, 195, 212, 216, 254, 255, 266, 273, A5.13, A5.14, A5.15, A5.16

    • currencies reported, 37, 273

    • data for institutions headquartered in and outside of the reporting country, 103–109

    • disclosing reserve assets and other foreign currency assets, 58–63

    • dissemination of data, 43, 56–57, 61, Appendix 1

    • features of, 20–44

    • financial activities covered, 24–25

    • financial derivatives activities. See Financial derivatives assets.

    • framework of, 4–8

    • gold reporting, 67, 72, 98–101

    • IMF reserve position, 75–76, 96

    • institutions covered, 20–23

    • items not applicable, 40, A5.11

    • other reserve assets reporting, 102

    • Pro Memoria section, 231–235, A4.5–12

    • reconciling with BPM6 concept of reserves, 110–117

    • reference date, 6, 32, 38, 58, 129, 130, 131–132, 144, 146–147, 158, 267, A5.2

    • reporting data, 37–44

    • reporting foreign currency reserves, 77–78

    • securities reporting, 79–90

    • special drawing rights reporting. See Special drawing rights.

    • structure of, 45–50

    • time horizon, 35–36

    • total deposits reporting, 91–95

    • transaction dates, 39

    • types of data reported, 46, 47, 50, 63, 112, 130, 161, 173, 181, 195, 239, 262, 272, A7.10

    • valuation principles. See Valuation principles.

  • Resident financial institutions

    • reserve assets in, 60

  • Residual maturity

    • for contingent net drains, 185

    • defined, 36

  • Reverse repos

  • defined, 82

    • predetermined drains, 151, 178, 253–254, 256

    • reporting securities in Reserves Data Template, 84–87, 256

  • S

  • Savings and loan associations

    • deposits held in, 92

  • Savings banks

    • deposits held in, 92

  • SDDS. See Special Data Dissemination Standard

  • SDRs. See Special drawing rights

  • Securities

    • collateralized, 54, 83

    • with embedded options, 199–205

    • foreign currency reserves, 77, 109, 115

    • guarantees, 195

    • indexed, 7, 162, 237, 242, 244, 248

    • market valuation, 131–132

    • predetermined drains, 149, 153–154, 162–166

    • quality of, 89, A7.3, A7.19

    • reconciling BPM6 concept of reserves and Reserves Data Template, 115

    • reporting in Reserves Data Template, 79–90

    • underwriting agreements, 197

  • Securities lending

    • defined, 83

    • differentiating from reserve assets, 72

    • predetermined drains, 178

    • reporting in Reserves Data Template, 81, 84, 210, 251–258

  • Securities lent/borrowed

    • reporting in Reserves Data Template, 88

  • See/buybacks

    • reporting securities in Reserves Data Template, 81 (footnote)

  • Series A and Series B notes, A8.10–11

  • Settlement dates, 39

  • Short leg, 173

  • Short positions, 28, 38, 150, 177, 182, 222–230, Box 4.1

  • Short-term

    • defined, 35

  • Short-term domestic currency debt, 242

  • Short-term drains, 139, 142

  • Short-term loans, 93, 102, 160–161

  • Silver bullion, 98

  • Social security funds

    • defined, 22

  • Soft puts, 203

  • Special Data Dissemination Standard, 30, 183, A1.1–8

  • Special drawing rights

    • allocation, A8.18–19, A8.23

    • accrued interest, A8.20–23

    • currency composition of reserves, 273

    • holdings, 97, A8.18–19

    • market valuation, 136

    • reconciling Reserves Data Template and BPM6 concept of reserves, 112

    • reporting in Reserves Data Template, 75, 97, 112, A8.18–22

    • as type of reserve asset, 12, 75–76

  • Spot transaction, 100 (footnote), 212

  • State governments

    • exclusion from central government definition, 22

  • Stock data

    • Reserves Data Template section reported in, 46

  • Stress testing, 30–31, 53, 57, 183, 231, 235

  • Strike price, 31, 134, 146, 222, 234

  • Subsidiaries of financial institutions, 61, 104–105, 108, 114

  • Swap agreements

    • for foreign exchange assets, 73, A7.25–28

  • Swap facilities, 213

  • Swap transactions, 212

  • Swaps, 102, 167–177. See also Gold swaps

  • T

  • Term deposits, 91, 197

  • Test date, 216

  • Time horizon

    • in Reserves Data Template, 35–36

  • Transaction dates, 39

  • Transaction prices, 131

  • Treasury bills

    • predetermined drains, 163

  • U

  • Unconditional credit lines, 206–221

  • Underwriting agreements, 197

  • Undrawn credit lines, 206–221

  • Unlisted (not listed) securities, 79

  • V

  • Valuation principles

    • benchmark revaluations, 130

    • prevailing market price, 134, 260, 264–265, 268

    • in Reserves Data Template, 32–34

    • market valuation of reserve assets, 117

  • W

  • Window dressing, 71

  • Written calls, 223, A4.8, Box 4.1

  • Written options, 182

  • Written puts, 223, A4.8, Box 4.1

1

See The Special Data Dissemination Standard: Guide for Subscribers and Users, International Monetary Fund.

*

This Appendix was provided by Charles Thomas of the U.S. Federal Reserve Board of Governors.

1

In the examples that follow, we denote the local currency as LC and assume the following for the current market exchange rates: LC100 = $1.00; JY125 = $1.00; $1.10 = EUR1.00. If market exchange rates are not readily available, the rates used should be indicated in the notes accompanying the data in the Template.

2

In other words, the dollar notional value of all options is independent of the local currency exchange rate.

1

For IMF operational purposes, there may be instances where the IMF provides financial assistance under a Fund-supported program to a member of a currency union that ultimately results in the member holding increased amounts of its domestic currency to address its balance of payments needs. For instance, from a Fund legal perspective, the euros acquired by euro area members have a dual nature in that a common currency such as the euro has characteristics of both a “domestic” and a “foreign” currency to euro area members. Indeed, the sale of euros by the Fund to a euro area member drawn on another member’s account with the Fund is regarded, for operational purposes, as a sale of another member’s currency, which is authorized by the Articles of Agreement (Article V, Section 2(a)), as euros held by euro area member countries can be claims on nonresidents.

2

The reference to Chapter 6 in this paragraph refers to that chapter in BPM6. For additional information, see also Appendix 7, “Frequently Asked Questions,” in this document.

1

There are no substantive differences in the definition of reserve assets between the fifth and sixth editions of the Balance of Payments Manual.

2

Gold bullion is an asset but it is not a claim, because no other entity has a corresponding liability.

3

In addition, paragraph 6.69 of BPM6 states that the ability to raise funds by using an asset as collateral is not sufficient to qualify an asset as a reserve asset.

1

For a statistical definition of the Reserve Position in the Fund, see paragraph 6.85 of BPM6.

2

At the time of preparing the updated text of the Reserves Data Template Guidelines, no Series B notes were outstanding.

3

For more information on GAB and NAB, see http://www.imf.org/external/np/exr/facts/gabnab.htm.

4

More specifically, BPM6 recommends that allocations of SDRs to the IMF member countries be shown in the balance of payments accounts as the incurrence of a liability by the recipient country in Other Investment, SDRs, with a corresponding entry in Reserve Assets, SDRs (see BPM6, paragraph 8.50.)

5

In regard to the rationale for the treatment of SDR allocations as debt, according to BPM6, paragraph 5.31: “Debt instruments are those instruments that require the payment of principal and/or interest at some point(s) in the future.” SDRs meet this definition because

they incur interest (at the SDR interest rate). Also, interest arrears accrue if not paid when due. The liability is fixed in amount. SDRs do not meet the definition of equity, because they do not provide for participation in the distribution of the residual value of the issuer on dissolution (see BPM6, paragraph 5.21).

6

Prescribed holders are member countries that are not SDR Department participants, institutions that perform the functions of a central bank for more than one member, and other official entities that have been designated by the IMF as eligible for acquiring and using SDRs in transactions, by agreement, in operations with participants and other holders.

7

For IMF administrative purposes, interest payments on SDR allocations are referred to as “charges.”

8

See BPM6, paragraphs 11.48–11.49.

9

As the rate of interest earned by economies holding SDRs is the same as the rate of interest owed by those with SDR allocations, if the levels of holdings and allocations are equal for an economy, no settlement payment is made.

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Cover International Reserves and Foreign Currency Liquidity
International Reserves and Foreign Currency Liquidity
Guidelines for a Data Template
ISBN:
9781484304228
ISSN:
2663-3744
Publication Date:
01 Oct 2013
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781484304228.069
Pages:
92
  • <sup><xref ref-type="fig" rid="Rapp04fig01">Figure A4.1</xref></sup>
    View in gallery
    Figure A4.1

    Foreign Currency Flows from Options Positions (up to 1 month)

  • Figure A4.2
    View in gallery
    Figure A4.2

    Foreign currency Flows from Options Positions (1 to 3 month)

  • Figure A4.3
    View in gallery
    Figure A4.3

    Foreign currency Flows from Options Positions (3 months to 1 year)

  • Figure A4.4
    View in gallery
    Figure A4.4

    Foreign currency Flows from Short Options Positions

  • <sup><xref ref-type="fig" rid="Rapp04fig05">Figure A4.5</xref></sup>
    View in gallery
    Figure A4.5

    Foreign Currency Flows from Long Options Positions

Figure A4.1

Foreign Currency Flows from Options Positions (up to 1 month)
Figure A4.2

Foreign currency Flows from Options Positions (1 to 3 month)
Figure A4.3

Foreign currency Flows from Options Positions (3 months to 1 year)
Figure A4.4

Foreign currency Flows from Short Options Positions
Figure A4.5

Foreign Currency Flows from Long Options Positions