Introduction

1. Arab Institute for Training and Research in StatisticsThe First Arab Statistical ConferenceAmman, Jordan 12-13 November 2007DRAFTInternational data dissemination standards: the role of central banks in METAC countriesPaul Austin

2. Introduction • This conference aims to “announce and emphasize the importance of good statistical work, and to point out the role of the National Statistical Organizations, and the need for capacity building in statistics”. • In this context, my presentation examines the impact of the International Monetary Fund’s (IMF) data dissemination standards initiative in fostering data transparency while contributing to the overall development of national statistical systems in central banks across the ten METAC countries. The focus is on external sector statistics. • The ten METAC countries are Afghanistan, Egypt, Iraq, Jordan, Lebanon, Libya, Sudan, Syria, West Bank & Gaza (Palestine), and Yemen. • Information on METAC: see http://www.imfmetac.org

3. The IMF’s Data Standards Initiative • Special Data Dissemination Standard (SDDS) A voluntary disclosure standard designed to guide IMF members that have, or that might seek, access to international capital markets in the provision of their economic and financial data to the public. (Egypt). Jordan actively working toward SDDS subscription. • General Data Dissemination System (GDDS) Maintains key features of the SDDS, but is aimed at assisting countries to develop sound statistical systems as a basis for timely dissemination of data to the public. (Afghanistan, Jordan, Lebanon, Sudan, West Bank & Gaza, and Yemen). Iraq, Libya and Syria working toward completing formal GDDS participation.

4. The SDDS data categories: Real Sector National Accounts Production indices Labor market indices (employment, unemployment, and wages and earnings) Fiscal sector General government operations Central government operations Central government debt Financial Sector Depository corporations survey (formerly analytical accounts of the banking sector) Central bank survey (formerly analytical accounts of the central bank) Interest rates Share price index External sector Balance of payments Official reserve assets International Reserves and Foreign Currency Liquidity Merchandise Trade International Investment Position (IIP) External debt Exchange rates Addendum: population

5. Role of Central Banks in SDDS/GDDS • Central banks as national coordinators of SDDS/GDDS • Central banks as compilers and disseminators of data and metadata (traditionally responsible for financial and external sector data, but also playing a role in other statistical areas). • Central banks as hosts of the national summary data page (NSDP) • Central banks observing tenets of good statistical citizenship by incorporating the access, integrity and quality dimensions of the SDDS into their operational procedures.

6. Central Banks as data compilers/disseminators • Across METAC countries, national central banks/monetary authorities compile and disseminate monetary and financial statistics. Central banks in the region have worked toward improving data coverage and timeliness. • National central banks/monetary authorities compile/disseminate balance of payments (BOP) and international investment position (IIP) statistics, although is some cases, the legal authority and/or responsibility is not clearly assigned. • National central banks/monetary authorities typically redisseminate merchandise trade statistics, based on data reported by the NSO or Customs Department.

7. BOP/IIP: Data Dissemination Practices

8. Disseminating the Data Template on International Reserves and Foreign Currency Liquidity (Reserves Template) In addition to covering the traditional balance-sheet information on international reserves and other selected external assets and liabilities of the authorities (monetary authorities and central government), the reserves template takes account of their off-balance sheet activities, and also notes future and potential inflows and outflows of foreign exchange associated with balance sheet and off-balance sheet position. It includes data intended to illustrate how liquid a country’s international reserves are (such as the identification of assets pledged and otherwise encumbered) and to reveal a country’s risk exposure to exchange rate fluctuations (including that relating to options contracts). See IRFCL, para. 5. Of the ten METAC countries, the Central Bank of Egypt and the Central Bank of Jordan compile and disseminate the reserves template data.

9. Disseminating External Debt Data • The new external debt data category in the SDDS calls for disseminating external debt of the general government, the monetary authorities, the banking sector, and all other sectors. • Data should be broken down by maturity (short-and long-term) on an original maturity basis, and by instrument. • The SDDS prescribes quarterly periodicity and timeliness. • The SDDS presentation table employs the concepts outlined in the External Debt Statistics: Guide for Compilers and Users (2003)

10. International Initiatives for disseminating external debt statistics • The Quarterly External Debt Database (launched in November 2004), jointly developed by the World Bank and the International Monetary Fund, brings together detailed external debt data that are published individually by countries that subscribe to the IMF’s SDDS. The benefit of bringing together comparable external debt data for a large number of SDDS-subscribing countries in one central location, is to facilitate macroeconomic analysis and cross-country data comparison. • The Joint External Debt Hub (JEDH)—jointly developed by the Bank for International Settlements, the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD) and the World Bank (WB)—brings together external debt data and selected foreign assets from international creditor/market and national debtor sources. See www.jedh.org

11. QEDS: Egypt’s Data at a Glance

12. METAC’s countries work on External Debt Statistics: Issues and Challenges • Egypt’s central bank compiles and disseminates external debt data in line with SDDS. • Jordan’s central bankin collaboration with the Jordan Ministry of Finance has begun (as of mid-2007) compiling and disseminating quarterly external debt statistics using the SDDS format, but coverage and timeliness issues remain owing to the absence of comprehensive source data on private sector debt; the authorities have an action plan for addressing this issue, including by the survey approach.

13. METAC’s countries work on External Debt Statistics: Issues and Challenges Pace of implementation of the methodological guidelines for external debt slow for a number of reasons, including: Debt Accounting problematic in some post-conflict countries where records may have been destroyed; focus has been on reconciling creditor/debtor records; and Institutional arrangements for compiling and disseminating external debt statistics either do not exist /or are not relevant to addressing the coverage requirements of external debt statistics (e.g., debt management offices tracks borrowing by the public sector)

14. METAC’s countries work on External Debt Statistics: Issues and Challenges Need for greater awareness of the importance of recording private sector debt and for establishing the appropriate data collection systems Central banks have an important role to play in external debt statistics compilation and dissemination, particularly in the context of their work on the BOP and IIP.

15. Central Banks and Data/Metadata Accessibility • Central banks have moved beyond the confines of the print media and are increasingly using the internet as a medium for improving the visibility of their statistics, publishing data compilation practices, and providing preannounced schedules for releases of data.

16. CBJ: Greater Visibility of Key Data

17. Developing National Summary Data Page (NSDPs) • A requirement for subscribing to the SDDS, the NSDP is a web page that disseminates a country’s key financial and economic data with periodicity and timeliness that accords with international data dissemination standards, and provides a gateway for users to locate more detailed data/metadata. • NSDPs are used by the IMF to monitor SDDS subscribers’ observance of the Standard • GDDS member countries are being encouraged to develop NSDPs (IMF working with Sudan and Qatar). Jordan’s central bank has developed an NSDP, as part of the work plan for subscribing to the SDDS. As an SDDS subscriber, Egypt has an NSDP

18. Jordan’s NSDP

19. Observing best practices • Advance Release Calendars (ARCs)- 2 of the 10 central banks in METAC countries currently use ARCs: Egypt and Jordan • Use of the Internet/electronic press releases as medium for first data release improving. • Documentation of statistical practices and dissemination of comprehensive information on methodology/compilation (in the latter, for example Banque du Liban has recently published an expanded external sector annual report that includes a comprehensive section on statistical methodology.

20. Producing statistics in line with international methodologies • Within the context of the GDDS, a number of METAC countries have focused on compiling data in accordance with international methodologies as an integral part of building national statistical systems • Most central banks have transitioned to the IMF’s Balance of Payments Manual, 5th edition (BPM5) as the basis for compiling and disseminating BOP data • Need for greater participation in the IMF’s Coordinated Portfolio Investment Survey for enhancing the quality of source data for BOP/IIP. • Regarding the implementation of the recommendations of the IMF’s Monetary and Financial Statistics Manual 2000, the record is mixed across METAC countries.

21. In closing… “Wider dissemination of information by all economic agents and transparency of policy and operations on the part of government and other regulatory authorities contribute significantly to efficient markets” Y. V Reddy, Reserve Bank of India (2001)