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Ms. Yin-Fun Lum and Mr. Calvin A McDonald
This paper discusses the main operational issues involved in the implementation of interbank foreign exchange systems in selected African countries. The countries considered are The Gambia, Ghana, Kenya, Mozambique, Nigeria, and Sierra Leone. The paper finds that exchange rates in these markets tend to be determined through transactions between dealers and clients at the retail level, for the most part, rather than through wholesale interdealer transactions. Additionally, many factors continue to limit the full development of these markets. In particular, informational problems limiting “real time” quotes, inadequate competition in the market, and insufficient regulations to reduce exchange rate risk and encourage “true” interdealer transactions. Despite these limitations, the markets studied have improved the efficiency of foreign exchange allocation and substantially narrowed exchange rate differentials between the official and parallel markets.
International Monetary Fund. External Relations Dept.
This paper discusses the study on development planning conducted by a small group within the World Bank. The study reveals that most countries not only encounter the same planning problems, they make the same mistakes. The paper highlights that although most countries with development plans have not succeeded in carrying them out, some countries without national development plans or national planning agencies have been developing rapidly. The paper also highlights that the lack of government support is the prime reason why so few development plans are carried out.
Ms. Anne Y. Kester

Abstract

58. This chapter provides guidelines to assist countries in reporting data on the authorities’ foreign currency resources (comprising reserve assets and other foreign currency assets) in Section I of the template. Items I.A.(1) through I.A.(5) are used to report information on reserve assets and item I.B., on other foreign currency assets. All items in Section I refer to outstanding assets (stock) on the reference date. As noted in para. 42, to facilitate liquidity analysis, it is recommended that information on special features of the reporting country’s reserves management policy and major sources of funds for reserve assets and other foreign currency assets be described in country notes accompanying the template data. To enhance data transparency, it is also important to indicate in country notes specific changes in the reporting country’s exchange rate arrangements (for example, the implementation of dollarization) and their impact on the level of the country’s reserve assets.

Ms. Anne Y. Kester

Abstract

180. Section III of the template covers contingent short-term net drains on foreign currency resources. As discussed in Chapter 3, net drains refer to outflows net of inflows. Contingent inflows and outflows simply refer to contractual obligations that give rise to potential or possible future additions or depletions of foreign currency assets. Contingent drains are by definition off-balance-sheet activities, since only actual assets and liabilities are to be reflected on balance sheets. Section III of the template differs from Section II because foreign currency flows to be reported in Section III are contingent upon exogenous events. As with predetermined foreign currency flows covered in Section II of the template, contingent flows can arise from positions with residents and nonresidents.

Ms. Anne Y. Kester

Abstract

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 = $1.00.2 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 LC 90 = $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 put option with a notional value of LC200 million and a strike price of LC110 = $1.00, this will be treated as a purchased call option with a notional value of $1.818 million (200 million/110).

International Monetary Fund. Statistics Dept.

Abstract

180 Section III of the Reserves Data Template covers contingent short-term net drains on foreign currency resources. As discussed in Chapter 3, net drains refer to outflows (reductions in foreign currency resources) net of inflows (increases in foreign currency resources). Contingent outflows and inflows simply refer to contractual obligations that give rise to potential or possible future additions or depletions of foreign currency assets. Contingent drains are reported as off-balance-sheet activities, since only actual assets and liabilities should be reflected on balance sheets. Section III of the Reserves Data Template differs from Section II because foreign currency flows to be reported in Section III are contingent upon exogenous events. As with predetermined foreign currency drains covered in Section II of the Reserves Data Template, contingent drains can arise from positions with either residents or nonresidents.

International Monetary Fund. Statistics Dept.

Abstract

58 This chapter provides guidelines to assist countries in reporting data on the authorities’ foreign currency resources (comprising reserve assets and other foreign currency assets) in Section I of the Reserves Data Template. Items I.A.(1) through I.A.(5) are used to report information on reserve assets and Section I.B., on other foreign currency assets. All items in Section I refer to outstanding assets (stock) on the reference date. As noted in paragraph 42, to facilitate liquidity analysis, it is recommended that information on special features of the reporting country’s reserves management policy and major sources of funds for reserve assets and other foreign currency assets be described in country notes accompanying the template data. To enhance data transparency, it is also important to indicate in country notes specific changes in the reporting country’s exchange rate arrangements (for example, the implementation of dollarization) and their impact on the level of the country’s reserve assets.

Mr. Raphael A Espinoza, Ms. Ghada Fayad, and Mr. Ananthakrishnan Prasad

-resource production function represented by g(q, L) and an inflow of foreign exchange resource rents represented by N . We are assuming here that oil production does not employ any resources, so the increase in oil revenue simply shows up as an increase in transfers received from abroad. The labor force L consists of the indigenous population I and the immigrant workers M . Changes in the labor force are driven only by changes in the inflow of foreign labor so that dL = dM (since dl = 0), which is in turn driven by resource rents, i.e. dM=M N dN where M N >0 . The

International Monetary Fund

year runs July 1–June 30. 6 According to the agreement, IFC would make available foreign exchange resources (up to US$50 million) to the NBR at a pre-determined exchange rate in exchange for local currency equivalent. The IFC intends to have bilateral agreements with local banks to lend the resources to the private sector at variable interest rates. The NBR guarantees foreign exchange resource availability to IFC for repayment of the loans and escrows these resources so that they are not considered part of free reserves available to the NBR (MEFP ¶17). 7