Review of the Adequacy of the Fund's Precautionary Balances

This paper reviews the adequacy of the Fund’s precautionary balances, using the framework approved by the Board in 2010.
Volume/Issue: Volume 2014 Issue 005
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Banks and Banking , Economics- Macroeconomics , Money and Monetary Policy , PP , precautionary balance , balance , Fund , SDR , Fund lending , Fund credit , credit capacity , cash flow , risk capital , market risk , unit of account , Credit , Personal income , Market risk , Credit risk , Financial statements , Global

Summary

This paper reviews the adequacy of the Fund’s precautionary balances, using the framework approved by the Board in 2010. The review takes place on a standard two year cycle. The paper discusses developments since the last review in 2012 and revisits several issues relating to the assessment of reserve adequacy that were discussed at that time.