02245cas a2200241 a 4500 AALejournalIMF019286 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498312417 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. Monetary and Capital Markets Department. Bhutan : Technical Assistance Report-Royal Monetary Authority-Steps Towards a Liquidity Forecasting and Management Framework. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (45 pages) IMF Staff Country Reports <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This Technical Assistance report highlights that setting up a liquidity forecasting framework would go a long way in establishing a key building block allowing the Royal Monetary Authority of Bhutan (RMA) to fulfil its legal mandate to formulate and implement monetary policy in ways better aligned with current central bank practices. The structural liquidity surplus, mainly due to foreign reserves accumulation, has been broadly stable in the absence of RMA intervention. The paper discusses that the volatility of autonomous factors and the fragmentation of the money market justify ambitious steps by the RMA towards setting up a liquidity management framework. The mission identified several constraints and gaps that need to be addressed to support the effectiveness of a liquidity forecasting framework. The mission's recommendations presented in the report aim at streamlining the processing of the Government's financial transactions and cash balances. Looking ahead, monetary policy transmission would benefit from developing RMA's liquidity forecasting and management capacity. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2019/114 Full text available on IMF http://elibrary.imf.org/view/journals/002/2019/114/002.2019.issue-114-en.xml IMF e-Library