External Sector Assessment (ESA)
Target Audience
Senior and mid level officials from Reserve Bank of India.
Course Description
This 2-day customized course, presented by the IMF, covers external sector assessment as a key requirement to achieve macroeconomic stability. It provides a thorough overview of how to assess the external sector, consisting of the following: (i) Exchange rate assessment methodologies; (ii) External Balance Assessment (EBA) Model; (iii) Equilibrium real exchange rate approach; (iv) Macroeconomic balance approach; and (v) External sustainability approach. In addition, the topic of external debt sustainability will also be featured. Presentations will be complemented by hands-on workshops using templates with country case studies used by the IMF teams in carrying out their assessment.
Course Objectives
Upon completion of this course, participants should be able to:
• Describe why external sustainability is key to macroeconomic stability and sustainable growth.
• Characterize key concepts, definitions and techniques for the external balance assessment including exchange rate assessment methodologies and other approaches.
• Develop a framework to assess a country’s external debt sustainability
• Have an understanding of the IMF’s decision making process to lend to a sovereign.