The latest steps taken by the Central Bank to further reduce the money in circulation have created tension between the bank and the IMF mission in charge of the standby agreement. The IMF people outrightly objected to the measures, saying they ?rejected the validity of the impact? of the measures to shrink the money supply. This information was contained in a letter sent by Jose Lois Malkum to the sub-director general of the IMF, Agustin Carstens. In the letter, Malkum complains that the IMF team rejected the Central Bank measure that established an investment coefficient of 5% of the funds subject to the legal reserve as of 24 March, and the obligatory use of these funds in certificates from the Central Bank. Lois Malkum said the technicians rejected this policy because it would not have any effect. Apparently, according to sources close to the IMF negotiations, this letter by Malkum was in response to one sent by the IMF mission team that not only rejected the proposal but questioned the quality of it, too.