The IMF held an outreach meeting in Washington on October 25 to discuss the draft Accompanying Document to the Guidelines for Foreign Exchange Reserve Management, which the organization developed in September 2001. The draft document, which contains 20 case studies, illustrates how countries at different stages of economic and financial development and with various institutional structures have developed their reserve management principles and practices. Sound reserve management practices are important because they can increase a country’s resilience to shocks.
The participants—24 representatives from 16 of the 20 participating countries, the Bank for International Settlements, and the World Bank—commended the IMF on the document and offered useful suggestions on details and emphasis. The case studies will provide a useful reference point for member countries seeking to strengthen their reserve management policies and practices. The document does not advocate any single approach or practice. Participants also discussed key issues of concern, such as managing information technology, developing business continuity procedures, assessing the impact of market uncertainty, and handling credit and legal risks.
The Accompanying Document will be revised further and submitted first to the participating countries and then to the IMF’s Executive Board in the spring of 2003 for final approval. After its approval, the document will be posted on the IMF’s external website.