2022-08-07-IMF-The_Acting_Chair_s_Summing_Up_Review_of_the_Fund_s_Policy_on_Multiple_Currency_Practices—Proposals_for_Reform_Executive_Board_Meeting_July_1,_2022_3页_112kb

Summary of IMF Executive Board Meeting 22/63 on MCP Policy Reform

The Acting Chair's summing up addressed the review of the IMF’s Policy on Multiple Currency Practices (MCPs). Executive Directors emphasized that MCPs can distort markets, create unfair advantages, hinder trade, and investment in the medium to long term. They agreed to retain MCP policy as a key element of the IMF’s framework to ensure orderly exchange arrangements and stable rates.

Directors supported reform proposals, including refining the policy to focus on official actions that segment forex markets or alter transaction costs, eliminating outdated MCP classifications, and aligning the policy with other IMF measures like exchange restrictions and capital flow liberalization. Specific changes include retaining the principal principle against unreasonable exchange rate deviations, updating the deviation norm to a country-specific market-based tolerance, and excluding certain transactions that align with best practices.

Transitional arrangements ensure no MCPs from specific practices immediately, and the new policy will be reviewed in five years or as needed. Directors also reinforced enhanced reporting and cooperation on MCPs, noting the policy’s integration with Article VIII and other frameworks, and welcomed staff outreach on implementation. Finally, they committed to addressing unapproved MCPs and potentially other policy areas in future reviews.