Exchange Rate Policy

ERP

TARGET GROUP: Junior to mid-level officials who work with exchange rate policy and analysis.

QUALIFICATIONS: Participants are expected to have an advanced degree in economics or equivalent professional experience and be comfortable with Microsoft Excel and Excel-based applications. Participants are expected to also have a working knowledge of EViews.

DESCRIPTION: This course, presented by the Institute for Capacity Development, gives a comprehensive overview of exchange rate analysis and policy. Topics covered include:

• Key exchange rate concepts (real, nominal, bilateral, multilateral, spot, forward) and arbitrage conditions (UIP, law of one price, PPP, relative PPP); its role in achieving internal and external balance (adjustment to overall equilibrium under floating and fixed exchange rate regimes); its role in economic growth (undervaluation, Washington Consensus, the Balassa-Samuelson effect).

• Exchange rate policy and regimes (taxonomy, impossible trinity) and associated policy mix (monetary policy independence, financial stability, fiscal policy, capital controls).

• Practical Problems of Exchange Rate Policy in Developing and Emerging Market Economies (concerns of excessive volatility; de jure vs. de facto regimes; competitiveness, price stability; exchange-rate pass-through; targets and instruments).

• Transitions from rigid to flexible exchange rates regimes (motives; speed of transition; deep and liquid domestic FX markets, derivatives markets, coherent intervention policy, nominal anchor; transition sequence).

• FX interventions (sterilized or non-sterilized; motivations, channels, effectiveness, instruments, tactics, policy communication).

• Currency crisis (causes, role of macroeconomic and prudential policies).

• Assessing reserve adequacy (ARA).

• External Balance Assessment (EBA).

• Early warning system.

COURSE OBJECTIVES: Upon completion of this course, participants should be able to:

• Assess reserve adequacy with traditional and the IMF ARA metric.

• Assess external balance position with EBA and EBA-lite methodologies.

• Construct systems for early warning of currency crises using data on nominal exchange rates and international reserves.

• Describe the exchange rate regime choice and how country-specific features could influence the choice.

• Describe the exchange rate regime choice and how country-specific features could influence the choice.

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Course Details

Start: 20250526May 26
End: 20250606Jun 06

Language: Eng/Pyc

Sponsoring Organization: IMF

Admin Arrangements


Application Deadline: February 16, 2025

Apply here