This fundamental weakness is one of the reasons the CMIM remains untapped since its inception and hence untested in the market, raising suspicion that pledges may not be honored promptly when a crisis starts (Rhee et al., 2013). The recent change in the IMF’s FX reserve classification makes this issue more critical.
Such changes the world over, have always been clearly marked and remembered as major occasions. Authorities such as the Federal Reserve System of the USA and Financial Services Authority of the United Kingdom where much literature and practice on the subject may be drawn had to change at one point in order to improve the way supervision is conducted.