- Owen Evens, and Peter Quirk
- Published Date:
- October 1995
Capital Account Convertibility Review of Experience and Implications for IMF Policies
By Staff Teams Headed by Peter J. Quirk and Owen Evans and comprising
Susana Crossa de Sosa
S. Kal Wajid
INTERNATIONAL MONETARY FUND
© 1995 International Monetary Fund
Capital account convertibility : review of experience and implications for IMF Policies / by staff teams headed by Peter J. Quirk and Owen Evans and comprising Przemyslaw Gajdeczka … [et al.].—
Washington, D.C. : Internatioanl Monetary Fund, 
p. cm.—(Occasional Paper, ISSN 0251-6365 ; no. 131)
1. Capital movements. 2. International Monetary Fund.
I. Quirk, Peter J. II. Series: Occasional paper (International Monetary Fund) ; no. 131.
(US$12.00 to full-time faculty members and students at universities and colleges)
Please send orders to:
International Monetary Fund, Publication Services
700 19th Street, N.W., Washington, D.C. 20431, U.S.A.
Tel.: (202) 623-7430
Telefax: (202) 623-7201
- I. Introduction
- II. Issues in Capital Account Convertibility
- Transition to an Open Capital Account
- IMF’s Approach to Capital Account Liberalization
- Issues in Relation to Extending the IMF’s Role in Promoting Capital Account Convertibility
- BoxCapital Inflows and Reimposition of Controls
- III. Experience with Capital Account Liberalization in Industrial Countries
- IV. Experience with Capital Account Liberalization in Developing Countries
- Process of Capital Account Reform
- Developments Following Liberalization of Capital Accounts
- Effectiveness of Maintaining and Reintroducing Control Mechanisms
- V. Multilateral and Regional Frameworks for Liberalization of Capital Movements
- VI. Survey of Capital Controls in Developing Countries
- VII. Recent Experiences with Capital Controls: Chile, Colombia, Malaysia, and Venezuela
- Section VI.
- 1. Capital Controls in Developing Countries:
- Section VII.
The following symbols have been used throughout this paper:
… to indicate that data are not available;
—to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
- between years or months (e.g., 1991-92 or January-June) to indicate the years or months covered, including the beginning and ending years or months;
/ between years (e.g., 1991/92) to indicate a crop or fiscal (financial) year.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.
This study was prepared jointly in the Monetary and Exchange Affairs and the Policy Development and Review Departments of the International Monetary Fund under the direction of Peter Quirk, Division Chief, Exchange Regime and Market Operations Division, Monetary and Exchange Affairs Department (MAE), and Owen Evans, Division Chief, Surveillance Policy Division, Policy Development and Review Department (PDR), respectively. Members of the MAE staff team were Arto Kovanen, Alexander Kyei, Dmitri Menchikov, Mark O’Brien, Laura Papi, Susana Crossa de Sosa, and Takashi Yoshimura. Members of the PDR team were Przemyslaw Gajdeczka, Vicente Galbis, Roger Nord, and Kal Wajid. Others who contributed significantly to the study were Can Demir, Claudia Echeverria, and Virgilio Sandoval. The authors are grateful to other members of their departments for comments and guidance as the project evolved, including especially Jack Boorman and Manuel Guitian. The authors are grateful to Rosemary Gallen, Valda Harvey, Francine Koch, and Marie Pirret for excellent secretarial assistance, and Elisa Diehl of the External Relations Department for careful editing and coordination of production. The authors are also indebted to a number of colleagues in the IMF for their willingness to exchange views and provide information.
The present study was completed in June 1995 and outlines developments on the basis of information available at that time. It is based on a series of papers prepared for discussion by the IMF’s Executive Board in July 1995. The study has benefited from comments by other members of the IMF’s staff and members of its Executive Board, but the views expressed are those of the authors and do not necessarily reflect the views of the IMF.