ABSTRACT
In the area of prevention, much has been accomplished in reducing vulnerabilities. There has been a move away from pegged exchange rates that tended to be associated with the build-up of large unhedged exposures; reserve levels have been increased; financial systems have been strengthened; and there has been a substantial increase in transparency. Beyond the normal areas of policy advice, the IMF has increased the attention given to the assessment and management of risks. To this end, Article IV missions now attach considerable importance to the analysis of debt sustainability and vulnerability indicators. At the same time, complementary efforts are underway to strengthen financial system surveillance under the umbrella of the Financial Sector Assessment Programmes (FSAPs). Another strand of this work consists of promoting the adoption of, and adherence to, standards and codes, and the associated assessments of progress in these areas in the context of Reports on the Observance of Standards and Codes (ROSCs).
