THE ARAB MONETARY FUND (and IMF) ORGANIZES A COURSE ON “EXCHANGE RATE POLICY”
Abu Dhabi – United Arab Emirates: This morning, the ” Exchange Rate Policy ” course , organized by the Institute for Training and Capacity Building at the Arab Monetary Fund, in cooperation with the International Monetary Fund’s Center for Economics and Finance in the Middle East, was inaugurated during the period 18-28 October 2021, through the distance training method adopted by the Fund in continuation of its training activity.
Achieving economic and financial stability is one of the most important economic goals in all countries, so macroeconomic policies are unique in large areas, especially those policies that aim to achieve stability. The course also highlights the differentiation of macroeconomic policies associated with different exchange rate regimes, the choice of the exchange rate regime, and the most important challenges facing exchange rate policy in developing and emerging market economies.
On this occasion, the speech of His Excellency Dr. Abdulrahman bin Abdullah Al-Hamidi, Director General and Chairman of the Board of Directors of the Arab Monetary Fund, stated:
It gives me great pleasure to welcome you to the inauguration of the ” Exchange Rate Policy ” course, which is being held by the Institute for Training and Capacity Building at the Arab Monetary Fund in cooperation with the International Monetary Fund’s Center for Economics and Finance in the Middle East, hoping that you will seize the opportunity and benefit from the topics of the course.
Achieving economic and financial stability is one of the most important economic goals in all countries, so macroeconomic policies are unique in large areas, especially those policies that aim to achieve stability. The course also highlights the differentiation of macroeconomic policies associated with different exchange rate regimes, the choice of the exchange rate regime, and the most important challenges facing exchange rate policy in developing and emerging market economies.
The exchange rate policy is one of the most important policies adopted by countries to maintain the stability of macroeconomic variables, the most important of which is inflation, which is considered one of the obstacles in achieving economic growth. appropriate exchange. A fixed exchange rate policy helps curb inflation, and a flexible exchange rate policy helps absorb external shocks. The results of adopting such economic policies were evident during the many economic crises that afflicted the economies of the world during the past two decades, which contributed to alleviating the negative effects of those crises.
It is known that the influx of capital significantly in the presence of an effective monetary policy enables countries to avoid the consequences of these flows represented by the rise in real exchange rates, thus reducing the competitiveness of these countries’ exports. Although these flows contribute to an increase in the volume of reserves, the accumulation of reserves may entail costs represented in interest payments on government bonds that are used to absorb the liquidity left by these flows. Therefore, it is necessary for countries to have controls to deal with capital flows, especially short-term, as these funds are often quick to exit.
Your course is rich in topics related to many important topics, as the different types of exchange rate strategies and arrangements and their compatibility with the existing economic policy will be reviewed.
The course will focus on the following main themes:
Basics of analyzing different exchange rate systems.
How to read international currency market indicators and exchange rates.
Assessing the adequacy of foreign exchange reserves using traditional and new indicators.
The relationship between exchange rate policy and macroeconomic policies.
Basic parameters for the transition from a fixed to a flexible exchange rate.
Establishment of early warning systems for currency crises.
In conclusion, I would like to thank the distinguished experts who presented the course materials, and to commend the fruitful cooperation that exists between the Arab Monetary Fund and the International Monetary Fund.