Front Matter Page

FISCAL AFFAIRS

How to Set Up a Cash Buffer: A Practical Guide to Developing and Implementing a Cash Buffer Policy

NOTE 20/04

Front Matter Page

Fiscal Affairs Department

How to Set Up a Cash Buffer: A Practical Guide to Developing and Implementing a Cash Buffer Policy

Prepared by Yasemin Hlircan, Fatoş Koç, and Emre Bahbek

INTERNATIONAL MONETARY FUND

Front Matter Page

©2020 International Monetary Fund

Cover Design: IMF Multimedia Services

Composition: The Grauel Group

HOW TO NOTE

Fiscal Affairs Department

How to Set Up a Cash Buffer: A Practical Guide to Developing and Implementing a Cash

Buffer Policy Prepared by Yasemin Hürcan, Fatoş Koç, and Emre Balıbek

Names: Hurcan, Yasemin. | Koç, Fatoş. | Balibek, Emre. | International Monetary Fund. Fiscal Affairs Department, issuing body. | International Monetary Fund, publisher.

Title: How to set up a cash buffer : a practical guide to developing and implementing a cash buffer policy / Prepared by Yasemin Hürcan, Fatoş Koç, and Emre Balıbek.

Other titles: Practical guide to developing and implementing a cash buffer policy | How to notes (International Monetary Fund)

Description: Washington, DC : International Monetary Fund, 2020. | December 2020. | Includes bibliographical references.

Identifiers: ISBN 9781513563848 (paper)

Subjects: LCSH: Cash management—Government policy. | Debts, Public.

Classification: LCC HG4028.C45 H87 2020

DISCLAIMER: Fiscal Affairs Department (FAD) How to Notes offer practical advice from IMF staff members to policymakers on important fiscal issues. The views expressed in FAD How to Notes are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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Contents

  • 1. Introduction

  • 2. Overview of Cash Buffer Practices

  • 3. Decision Factors for Setting the Target Cash Buffer Level

  • 4. Practical Approaches to Determining the Target Buffer

  • 5. Other Considerations in Adopting a Cash Buffer Policy

  • 6. Concluding Remarks

  • Annex 1. Central Government Cash Balances at the Central Bank

  • Annex 2. Template for a Cash Buffer Target for Debt Management

  • Annex 3. Template for a Cash Buffer Target for Cash Management

  • References

How to Set Up A Cash Buffer: A Practical Guide to Developing and Implementing a Cash Buffer Policy
Author: Yasemin Hurcan, Mr. Emre Balibek, and Fatoş Koç