CENTRAL BANKS CLASH WITH IMF ON POLICY TRANSPARENCY CODE

Leading central banks are putting pressure on the International Monetary Fund to water down proposals aimed at securing more transparency in monetary policymaking in the wake of the Asian financial crisis. Their objections to an IMF draft code of conduct have prompted accusations that they are trying to rewrite the rules to suit themselves. Several leading central bankers have objected both to the code's content and the way it was drawn up. The IMF, in turn, is upset that central banks are complaining about a process they signed up to in October's joint Group of Seven statement with finance ministers. "There is righteous indignation on both sides," said one senior central banker.