ITRS

ITRS

• Most ITRS(formerly known as foreign exchange record systems)

• The most comprehensive “traditional” ITRS measures: (1) cash transactions with nonresidents that pass through domestic banks; (2) cash transactions that pass through enterprise accounts with banks abroad; (3) transactions on intercompany accounts with nonresident companies; (4) positions; and (5) noncash transactions.

Principles of ITRS Design

The core of the design of ITRS’s design is simplicity, coverage, and ease of transmission. Against the above backdrop, ITRS template.

• the use of standardized coding system for countries, currencies, transactions, and positions;

• the data are derived obtained from the core banking and linked directly to the bank’s operations;

• data are collected and monitored centrally; and

• the system is IT backed and flexible enough to accommodate specific requirements of the respondents.

ITRS Report

ITRS is designed as a closed system

Reporting Threshold

With

Documentation

Upper

Individual

Transactions

Lower

Aggregate

ىسNeutral Code

Such design enables data verification, the harmonization of data on transactions and positions, and validation with Monetary and Financial Statistics (MFS) data. It may be noted that all the transactions in the correspondent accounts will not lead to change in BoP position and also banks may not be in a position to report purpose of certain transactions, especially transactions executed on behalf of other ITRS reporters (such as exchange houses). Therefore, a special code, named as ‘neutral’ transactions’ has been assigned for the aggregated data on non-BoP and non-purpose transactions

Bank

Examples of ITRS “Neutral” Transactions

Funds transfers between the same Omani bank’s correspondent's accounts.

Purchase (sale) and conversion of currency between residents (non-cash settlement).

Purchase (sale) of foreign currency in cash for cashless foreign currency between juridical persons-residents.

Settlements between non-residents.

Foreign currency’s conversion between resident and non-resident.

Continuous يDevelopment

Where to Next?

Continuous يDevelopment

• Listed Tables.

• Period.

• Other ITRS reporters are companies called direct reporters.

• Transactions performed through nonresident accounts with resident banks are monitored. Under a closed ITRS, transactions going through these accounts with both resident and nonresident counterparts will be recorded; however those with a resident counterpart will be classified as neutral.

Continuous يDevelopment

• FDRs report details of their noncash transactions, such as the granting of trade credit or loans, with nonresidents and the corresponding positions.

Advantages

• The most signifi cant advantage of the ITRS may be its capability to deliver information to the compiler in a very timely and frequent manner.

• A cost-eff ective source of data.

• Well-structured ITRS in an exchange control regime tend to be accurate.

Challenges

• Misclassification.

• The adoption of thresholds, common in most ITRS, represents a high risk of data omission.

• More staff and resources.

• coverage gap.

• In some cases, ITRS register only net amounts instead of gross flows required for the compilation of balance of payments. This arises, for instance, for some transport services, money transfers transactions, and postal network activity.

• Cash basis & accrual basis of recording.

Questions

ERSD

Thank you

BoP Team