Review of IMF Policy on Multiple Currency Practices – Proposals for Reform

Review of IMF Policy on Multiple Currency Practices – Proposals for Reform

Publication date:

July 15, 2022

Electronic access:

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In February 2019, the Executive Board reviewed staff’s preliminary proposals to reform the IMF’s policy on multiple currency practices (MCPs) and supported the majority of the proposals. The Council expressed its strong support for refocusing the policy on the official action that segments the foreign exchange markets, eliminating the concept of potentiality and replacing the current fixed rule of 2% for the identification of MCPs for transactions in cash by a country-specific market-based standard. and a margin of tolerance that would apply uniformly to all members for cash and non-cash transactions. The Board also supported the staff’s proposals regarding the other elements of the new PCM identification methodology, the treatment of illegal parallel markets, the exclusion of broken cross rates from the scope of the policy, and the links with the institutional vision on the liberalization and management of capital flows. The document outlines operational considerations to address non-compliance and ensure a smooth transition. It is proposed to improve the current cooperative approach to dealing with non-compliance by increasing transparency and accountability.


Guidance Document No. 2022/036





Publication date:

July 15, 2022



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