Hello BGG,

After reading (and rereading many times) the 2013 Article IV Consultation report, I now see where the IMF Article IV Staff mentioned that they would NOT APPROVE the "multiple currency practice" that is derived from the greater than 2% spread in the auction price and market price.

There seems to be an abundance of enthusiasm about the market rate being at 1210 (even though it got as low as 1178 in June, 2009). Everyone seems to have a different 2% spread target price, based upon a different market rate (including or excluding the CBI commission). The point that everyone is missing, IMO, is that the IMF has stated in many publications that the Fund COULD APPROVE the current foreign exchange auction spread AT ANY TIME if they elected to do so!

Pg. 27-29 of the IMF document: http://www.imf.org/external/np/leg/s...eng/elizal.pdf states, "Approval is normally granted by the Fund by a formal decision, provided that the Fund is satisfied that the restrictions are imposed for balance of payments reasons and are not discriminatory, that their use will be temporary while the member is seeking to eliminate the need for them."

Another document that outlines the restriction and that the Fund may approve the practice at any time. http://www.imf.org/external/pubs/ft/...n=6790-(81/43)

Thanks for your time and hard work!

With Respect,