The Exchange Rate Policy course at the JVI

The Exchange Rate Policy Course (ERP) of the IMF was delivered at the JVI between June 3 and June 14. It was attended by 28 participants from 14 countries, coming mostly from central banks, but also from ministries of finance and other public institutions.

The course reviewed the exchange-rate-related policy topics and challenges in emerging and developing economies, such as exchange rate analysis, exchange rate regimes, interactions with other macroeconomic policies, transition towards more flexible regimes, foreign exchange interventions, reserve adequacy and currency crises. Key IMF surveillance tools related to exchange rates were also covered: Assessing Reserve Adequacy, External Balance Assessment and Early Warning Systems. 

The extensive material was covered via a mixture of lectures and workshops, as well as empirical findings and lessons from experience, thus enhancing the understanding of economic theory. Some workshops were based on discussions or presentations by participants, focusing on various trade offs related to exchange rate policy. Other workshops were more technical, particularly the ones related to IMF tools mentioned above. 

In the final part of the course, participants prepared and delivered presentations on the external sector assessment of their countries. The topics presented included recent external sector developments, assessments of external balance and foreign exchange reserves, and foreign exchange interventions. Participants were quite engaged in preparing their presentations and candid about the challenges their countries face. The last day featured a review session based on a Jeopardy game, which served as a successful tool to review the course material and to consolidate learning gains in an entertaining manner.

The course was well received by participants. They underscored their improved ability to provide policy advice and to analyze economic and financial conditions of their country or region. Several participants also mentioned that they would use the knowledge gained during these two weeks to analyze particular exchange rate related issues in their home countries. 

Rilind Kabashi, Senior Economist, Joint Vienna Institute