Annual Report on Exchange Arrangements and Exchange Restrictions, 2000
Front Matter

Front Matter

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2000
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    © 2000 International Monetary Fund

    Library of Congress Cataloging-in-Publication Data

    International Monetary Fund.

    Annual report on exchange arrangements and exchange restrictions. 1979—

    Continues: International Monetary Fund. Annual report on exchange restrictions, 1950–1978

    1. Foreign exchange — Law and legislation — Periodicals. 2. Foreign exchange — Control — Periodicals. I. Title.

    K4440.A13 157 [date] 341.7’51 79-644506

    ISSN 0250-7366

    ISBN 9781557758989

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    Letter of Transmittal to Members and Governors of the Fund

    August 28, 2000

    Dear Sir or Madam:

    I have the honor to transmit to you a copy of the International Monetary Fund’s Annual Report on Exchange Arrangements and Exchange Restrictions, 2000, which has been prepared in accordance with the provisions of Article XIV, Section 3 of the Articles of Agreement.

    On behalf of the Executive Board, I should like to express our appreciation of the cooperation of the countries in the preparation of the Report.

    Sincerely yours,

    Horst Köhler

    Chairman of the Executive Board and Managing Director

    Contents

    Note: The term “country,” as used in this publication, 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.

    PREFACE

    The Annual Report on Exchange Arrangements and Exchange Restrictions has been published by the IMF since 1950. It draws on information available to the IMF from a number of sources, including that provided in the course of official visits to member countries, and has been prepared in close consultation with national authorities. The information is presented in a tabular format.

    This project was coordinated in the Monetary and Exchange Affairs Department by a staff team comprising Virgilio A. Sandoval and Harald Anderson, directed by Akira Ariyoshi, and coordinated by Judit Vadasz. It draws on the specialized contribution of that department (for specific countries), with assistance from staff members of the IMF’s six area departments, together with staff of other departments. The report was edited by Gail Berre and Martha Bonilla of the External Relations Department, and was produced by Mr. Anderson and the IMF Graphics Section.

    DEFINITION OF ACRONYMS

    ACP

    Atlantic, Caribbean, and Pacific countries

    ACU

    Asian Clearing Union (integrated by Bangladesh, India, Islamic Republic of Iran, Myanmar, Nepal, Pakistan, and Sri Lanka)

    AFTA

    ASEAN free trade area (see ASEAN, below)

    AMU

    Asian monetary unit

    ANZCERTA

    Australia-New Zealand Closer Economic Relations and Trade Agreement

    ASEAN

    Association of Southeast Asian Nations (integrated by Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore, and Thailand)

    ATC

    Agreement of Textiles and Clothing

    BCEAO

    Central Bank of West African States (Banque centrale des états de l’Afrique de l’ouest); the West African states are Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo

    BEAC

    Bank of Central African States (Banque des états de l’Afrique centrale); the Central African states are Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea, and Gabon

    BLEU

    Belgium-Luxembourg Economic Union

    CACM

    Central American Common Market (integrated by Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua)

    CAEMC

    Central African Economic and Monetary Community (integrated by the members of the BEAC)

    CAP

    Common agricultural policy (of the EU)

    CARICOM

    Caribbean Community and Common Market (integrated by Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago)

    CEEAC

    Economic Community of Central African States (integrated by Angola, Burundi, Cameroon, Central African Republic, Chad, Democratic Republic of the Congo, Republic of Congo, Equatorial Guinea, Gabon, Rwanda, and São Tomé and Príncipe)

    CEFTA

    Central European Free Trade Area (integrated by Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovak Republic, and Slovenia)

    CEPGL

    Economic Community of the Great Lakes Countries (integrated by Burundi, Democratic Republic of the Congo, and Rwanda)

    CEPT

    Common effective preferential tariff of the ASEAN free trade zone

    CET

    Common external tariff

    CFA

    Communauté flnancière d’Afrique (administered by the BCEAO) and Coopération financière en Afrique centrale (administered by the BEAC)

    CIS

    Commonwealth of Independent States (integrated by Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Russian Federation, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan)

    CMA

    Common monetary area (a single exchange control territory comprising Lesotho, Namibia, South Africa, and Swaziland)

    CMCF

    Caribbean Multilateral Clearing Facility

    CMEA

    Council for Mutual Economic Assistance (dissolved; formerly integrated by Bulgaria, Cuba, Czechoslovakia, Hungary, Mongolia, Poland, Romania, the U.S.S.R., and Vietnam)

    COMESA

    Common Market for Eastern and Southern Pacific (integrated by Angola, Burundi, Comoros, Democratic Republic of the Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Namibia, Rwanda, Seychelles, Sudan, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe)

    EAC

    East African Community

    ECB

    European Central Bank

    ECCB

    Eastern Caribbean Central Bank (Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines)

    ECCU

    Eastern Caribbean Common Union

    ECOWAS

    Economic Community of West African States (CEDEAO) (integrated by Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, and Togo)

    ECSC

    European Coal and Steel Community

    ECU

    European currency unit

    EEA

    European economic area

    EFTA

    European Free Trade Association (integrated by Iceland, Liechtenstein, Norway, and Switzerland)

    EMS

    European monetary system

    EMU

    European Economic and Monetary Union

    ERM

    Exchange rate mechanism (of the EMS)

    EU

    European Union (formerly European Community; integrated by Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and United Kingdom)

    FSU

    Former Soviet Union

    GCC

    Gulf Cooperation Council (Cooperation Council for the Arab States of the Gulf; integrated by Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates)

    GSP

    Generalized system of preferences

    LAIA

    Latin American Integration Association (integrated by Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, and República Bolivariana de Venezuela)

    LC

    Letter of credit

    LIBOR

    London interbank offered rate

    MERCOSUR

    Southern Cone Common Market (integrated by Argentina, Brazil, Paraguay, and Uruguay)

    MFA

    Multifiber Arrangement

    MFN

    Most favored nation

    MOF

    Ministry of Finance

    NAFTA

    North American Free Trade Agreement

    NATO

    North Atlantic Treaty Organization

    OECD

    Organization for Economic Cooperation and Development (integrated by Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Republic of Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland, Turkey, United Kingdom, and United States)

    OECS

    Organization of Eastern Caribbean States (integrated by Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines)

    OGL

    Open general license

    PTA

    Preferential trade area for eastern and southern African states

    RCPSFM

    Regional Council on Public Savings and Financial Markets (an institution of WAEMU countries that is involved in the authorization for issuance and marketing of securities)

    SACU

    Southern African Customs Union (integrated by Botswana, Lesotho, Namibia, South Africa, and Swaziland)

    SADC

    Southern Africa Development Community (integrated by Angola, Botswana, Democratic Republic of the Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, and Zimbabwe)

    SDR

    Special drawing rights

    SIBOR

    Singapore interbank offered rate

    SPARTECA

    South Pacific Regional Trade and Economic Cooperation Agreement (signed by Australia, Cook Islands, Fiji, Kiribati, Marshall Islands, Federated States of Micronesia, Nauru, New Zealand, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu)

    UDEAC

    Central African Customs and Economic Union (Union douanière et économique de l’Afrique centrale; integrated by Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea, and Gabon)

    UN

    United Nations

    UNITA

    National Union for the Total Independence of Angola

    VAT

    Value-added tax

    WAEMU

    West African Economic and Monetary Union (formerly WAMU; integrated by the members of the BCEAO)

    WAMA

    West African Monetary Agency (formerly WACH)

    WTO

    World Trade Organization

    Note: This list does not include acronyms of purely national institutions mentioned in the country chapters.

    INTRODUCTION

    The report provides a detailed description of the exchange arrangements and exchange restrictions of individual member countries, as well as Aruba and the Netherlands Antilles, for which the Kingdom of the Netherlands has accepted the IMF Articles of Agreement, and Hong Kong SAR. In general, the description relates to the exchange and trade systems as of the end of 1999, but, in appropriate cases, reference is made to significant developments that took place in early 2000.

    The description of the exchange and trade system is not necessarily confined to those aspects involving exchange restrictions or exchange controls. As in previous reports, questions of definition and jurisdiction have not been raised, and an attempt has been made to describe exchange and trade systems in their entirety, except for the tariff structure and, in most cases, direct taxes on imports and exports.

    Following a standardized approach, the description of each system is broken down into similar headings, and the coverage for each country includes a final section that lists chronologically the more significant changes during 1999 and early 2000.

    The report is presented in a tabular format that enhances transparency and the uniformity of treatment of the information across countries and includes coverage on the regulatory framework for capital movements. The information is drawn from the exchange arrangements and exchange restrictions database maintained by the IMF. The country tables present an abstract of the relevant information that is available to the IMF. The table on Summary Features of Exchange Arrangements and Regulatory Frameworks for Current and Capital Transactions in Member Countries (Appendix I) provides an overview of the characteristics of the exchange and trade systems of IMF member countries. The Country Table Matrix (Appendix II) provides a full listing of the rubrics used in the database.

    When information in a particular category within a section is not available at the time of publication, the category is displayed with a note to that effect (that is, n.a.). When information is available on all but a particular item or items within a category, these items are not included in the table. In cases where members provided the IMF with the information that a category or an item is not regulated, these are marked by “n.r.”

    COMPILATION GUIDE

    Status Under IMF Articles of Agreement
    Article VIIIThe member country has accepted the obligations of Article VIII, Sections 2, 3, and 4 of the IMF’s Articles of Agreement.
    Article XIVThe member country continues to avail itself of the transitional arrangements of Article XIV, Section 2.
    Exchange Arrangement
    CurrencyThe official legal tender of the country.
    Other legal tenderThe existence of another currency that is allowed to be used officially in the country.
    Exchange rate structureThe existence of more than one exchange rate that may be used simultaneously for different purposes and/or by different entities. If there is one exchange rate, the system is called unitary; if there are more than one, the system is called dual or multiple.
    Classification
    Exchange arrangement with no separate legal tenderThe currency of another country circulates as the sole legal tender, or the member belongs to a monetary or currency union in which the same legal tender is shared by the members of the union.
    Currency board arrangementA monetary regime based on an explicit legislative commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate, combined with restrictions on the issuing authority to ensure the fulfillment of its legal obligation.
    Conventional pegged arrangementThe country pegs its currency (formally or de facto) at a fixed rate to a major currency or a basket of currencies, where the exchange rate fluctuates within a narrow margin of at most ±1% around a central rate.
    Pegged exchange rate within horizontal bandsThe value of the currency is maintained within certain margins of fluctuation around a formal or de facto fixed peg. The margins are wider than ±1% around the central rate.
    Crawling pegThe currency is adjusted periodically in small amounts at a fixed, preannounced rate or in response to changes in selective quantitative indicators.
    Crawling bandThe currency is maintained within certain fluctuation margins around a central rate adjusted periodically at a fixed preannounced rate, or in response to changes in selective quantitative indicators.
    Managed floating with no preannounced path for the exchange rateThe monetary authority influences the movements of the exchange rate through active intervention in the foreign exchange market without specifying, or precommitting to, a preannounced path for the exchange rate.
    Independently floatingThe exchange rate is market determined, with any foreign exchange intervention aimed at moderating the rate of change and preventing undue fluctuations in the exchange rate, rather than at establishing a level for it.
    Exchange taxThe existence of a special tax on foreign exchange transactions.
    Exchange subsidyForeign exchange transactions are subsidized by using separate, nonmarket exchange rates.
    Forward exchange marketThe existence of a forward exchange market.
    Official cover of forward operationsOfficial coverage of forward operations refers to the case where an official entity (the central bank or the government) assumes the exchange risk of certain foreign exchange transactions.
    Arrangements for Payments and Receipts
    Prescription of currency requirementsThe official requirements affecting the selection of currency and the method of settlement of transactions with other countries. When a country has concluded payment agreements with other countries, the terms of these agreements often lead to a prescription of currency for specified categories of payments to and from the countries concerned.
    Payment arrangements
    Bilateral payment arrangementsTwo countries conclude an agreement to prescribe specific rules for payments to each other, including cases when private parties are also obligated to use specific currencies. These agreements can be either operative or inoperative.
    Regional arrangementsMore than two parties participate in a payment agreement.
    Clearing agreementsThe official bodies of two or more countries agree to offset with some regularity the balance that arises in the payments to each other as a result of exchange of goods, services, or less often, capital.
    Barter agreements and open accountsThe official bodies of two or more countries agree to offset exports of goods and services to one country with imports of goods and services from the same country, without payment.
    Administration of controlThe authorities’ division of responsibility for policy and the administration of exchange controls, and the extent of delegation of powers to outside agencies (often banks authorized to effect foreign exchange transactions).
    International security restrictionsRestrictions on payments and transfers for international transactions imposed by member countries for reasons of national or international security.
    In accordance with Executive Board Decision No. 144-(52/51)International security restrictions on the basis of IMF Executive Board Decision No. 144-(52/51) establishing the obligation of members to notify the IMF before imposing such restrictions, or, if circumstances preclude advance notification, as promptly as possible.
    In accordance with UN sanctionsSanctions imposed against a second body on the basis of a UN decision.
    Payment arrearsOfficial or private residents of a member default on their payments or transfers to nonresidents. This category includes only the situation in which the domestic currency is available for the residents to settle their debts, but they are unable to obtain foreign exchange, for example, because of the presence of an officially announced or unofficial queuing system. The category does not cover nonpayment of private parties due to the bankruptcy of the party concerned.
    Controls on trade in gold (coins and/or bullion)The existence of separate rules for trading with gold both domestically and with foreign countries.
    Controls on exports and imports of banknotesThe existence of regulations for the physical movement of means of payment between countries. When information is available, the category distinguishes between separate limits for the (1) export and import of banknotes by travelers and (2) export and import of banknotes by banks and other authorized financial institutions.
    Resident Accounts
    The category describes the manner in which the country treats resident accounts, if allowed, that are maintained in the national currency or in foreign currency, locally or abroad, and the facilities and limitations attached to such accounts. When there is more than one type of resident account, the nature and operation of the various types of accounts are also described: for example, if residents are allowed to open foreign exchange accounts with or without approval from the foreign exchange authority or if these accounts are allowed to be held domestically or abroad; or likewise whether the balances on accounts held by residents in domestic currency are allowed to be converted into foreign currency.
    Nonresident Accounts
    The category describes the manner in which the country treats local nonresident accounts, if allowed, that are maintained in the national currency or in foreign currency, and the facilities and limitations attached to such accounts. When there is more than one type of nonresident account, the nature and operation of the various types of accounts are also described.
    Blocked accountsBlocked accounts of nonresidents are usually accounts in domestic currency. Regulations do not allow or limit the conversion and/or transfer of the balances of such accounts.
    Imports and Import Payments
    The category describes the nature and extent of exchange and trade restrictions on imports.
    Foreign exchange budgetInformation on the existence of a foreign exchange plan, i.e., a prior allocation of a certain amount of foreign exchange, usually on an annual basis, for the importation of specific types of goods and services; in some cases, also differentiating between individual importers.
    Financing requirements for importsInformation on specific import financing regulations limiting the rights of residents to conclude private contracts in which the financing options differ from the official regulations.
    Documentation requirements for release of foreign exchange for imports
    Domiciliation requirementsThe obligation to domicile the transactions with a specified (usually domestic) financial institution.
    Preshipment inspectionMost often a compulsory government measure aimed at establishing the veracity of the import contract in terms of volume, quality, and price.
    Letters of creditPrivate parties are obligated to use letters of credit as a form of payment for their imports.
    Import licenses used as exchange licensesThe import licenses are not used for trade purposes but to restrict the availability of foreign exchange for legitimate trade.
    Other
    Import licenses and other nontariff measures
    Positive listA list of goods that may be imported.
    Negative listA list of goods that may not be imported.
    Open general licensesThe item indicates arrangements whereby certain imports or other international transactions are exempt from the restrictive application of licensing requirements.
    Licenses with quotasThe item refers to cases where a license for the importation of a certain good is granted, but a specific limit is imposed on the amount to be imported.
    Other nontariff measuresThe item may include the prohibition to import certain goods or all goods from a certain country. Several other nontariff measures are used by members (e.g., phytosanitary examinations, setting of standards, etc.), but these are not covered fully by the annual report.
    Import taxes and/or tariffsA brief description of the import tax/tariff system, including taxes levied on the foreign exchange made available for imports.
    Taxes collected through the exchange systemIndicates if any taxes apply to the exchange side of an import transaction.
    State import monopolyPrivate parties are not allowed to engage in the import of certain commodities or they are limited in their activity.
    Exports and Export Proceeds
    Identifies restrictions on the use of export proceeds, as well as regulations on exports.
    Repatriation requirementsRefers to the obligation of exporters to bring back into the country export proceeds.
    Surrender requirementsRefers to regulations requiring the recipient of repatriated export proceeds to sell, sometimes at a specified exchange rate, any foreign exchange proceeds in return for local currency to the central bank, commercial banks, foreign exchange markets, or exchange dealers authorized for this purpose.
    Financing requirementsInformation on specific export financing regulations limiting the rights of residents to conclude private contracts in which the financing options differ from the official regulations.
    Documentation requirementsThe same categories are used as in the case of imports.
    Export licensesRestrictions on the right of residents to export goods. These restrictions may take the form of quotas (when a certain quantity of shipment abroad is allowed) or the absence of quotas (when the licenses are issued at the discretion of the foreign trade authority).
    Export taxesA brief description of the export tax system, including the existence of taxes that are levied on the foreign exchange earned by exporters.
    Payments for Invisible Transactions and Current Transfers
    Controls on these transfersDescribes the procedures for effecting payments abroad for current transactions in invisibles with reference to prior approval requirements, the existence of quantitative and indicative limits, and/or bona fide tests. Detailed information on the most common categories of transactions is provided only when regulations differ for the various categories. Indicative limits establish maximum amounts up to which the purchase of foreign exchange is allowed upon declaration of the purpose of the transaction, mainly for statistical purposes. Amounts above those limits are granted if the bona fide nature of the transaction is established by the presentation of appropriate documentation. Bona fide tests also may be applied for transactions for which quantitative limits have not been established.
    Trade-related paymentsThe comprehensive category includes freight/insurance (including possible regulations on non trade—related insurance payments and transfers); unloading/storage costs; administrative expenses; commissions; and customs duties and fees.
    Investment-related paymentsThe comprehensive category includes profits/dividends; interest payments (including interest on debentures, mortgages, etc.); amortization of loans or depreciation of direct investments; and payment and transfer of rent.
    Payments for travelIncludes international travel for pleasure, recreation, business, etc.
    Personal paymentsThe comprehensive category includes medical costs; study abroad costs; pensions (including regulations on the payment and transfer of pensions by both state and private pension providers on behalf of nonresidents, as well as the transfer of pensions due to residents); and family maintenance/alimony (including regulations on the payment and transfer abroad of family maintenance/alimony by residents and the transfer of family maintenance/alimony received by residents from abroad).
    Foreign workers’ wagesTransfer abroad of earnings by nonresidents working in the country.
    Credit card use abroadUse of credit and debit cards to pay for invisible transactions.
    Other paymentsThe comprehensive category includes subscription/membership fees, authors’ royalties, consulting/legal fees, and so forth.
    Proceeds from Invisible Transactions and Current Transfers
    Encompasses all regulations governing exchange receipts derived from transactions in invisibles, as well as a description of any limitation on their conversion into domestic currency and the use of those receipts.
    Repatriation requirementsThe concepts of repatriation and surrender requirements are similar to those applied to export proceeds.
    Restrictions on use of fundsRefers mainly to the limitations imposed on the use of receipts previously deposited in certain bank accounts.
    Capital Transactions
    Describes regulations influencing capital movements. The concepts of controls and capital transactions are interpreted broadly. Thus, controls on capital movements include prohibitions; need for prior approval, authorization, and notification; multiple currency practices; discriminatory taxes; and reserve requirements or interest penalties imposed by the authorities that regulate the conclusion or execution of transactions or transfers with respect to both inward and outward capital flows or the holding of assets at home by nonresidents and abroad by residents. The coverage of the regulations would apply to receipts as well as payments and to actions initiated by nonresidents and residents. Moreover, because of their close association with capital movements, information is also provided on local financial operations conducted in foreign currency. Regarding the latter, it indicates specific regulations in force limiting residents and nonresidents to issue a security denominated in foreign currency or, generally, limitations on agreeing upon a contract expressed in terms of foreign exchange.
    Controls on capital and money market instrumentsRefers to the public offering or private placement on a primary market or listing on a secondary market.
    On capital market securitiesRefers to shares and other securities of a participating nature, and bonds and other securities with an original maturity of more than one year.
    Shares or other securities of a participating natureTransactions with shares and other securities of a participating nature are included in the category if the investment is not made to acquire a lasting economic interest in the management of the enterprise concerned. Investment to acquire a lasting economic interest is treated under direct investments.
    Bonds or other debt securitiesRefers to bonds and other securities with an original maturity of more than one year. The term “other securities” includes notes and debentures.
    On money market instrumentsRefers to securities with an original maturity of one year or less and includes shortterm instruments, such as certificates of deposit and bills of exchange. It also includes treasury bills and other short-term government paper, banker’s acceptances, commercial paper, interbank deposits, and repurchase agreements.
    On collective investment securitiesIncludes share certificates and registry entries or other evidence of investor interest in an institution for collective investment, such as mutual funds, and unit and investment trusts.
    Controls on derivatives and other instrumentsRefers to operations in other negotiable instruments and nonsecuritized claims not covered under the above subsections. These may include operations in rights; warrants; financial options and futures; secondary market operations in other financial claims (including sovereign loans, mortgage loans, commercial credits, negotiable instruments originating as loans, receivables, and discounted bills of trade); forward operations (including those in foreign exchange); swaps of bonds and other debt securities; credits and loans; and other swaps (interest rate, debt/equity, equity/debt, foreign currency, as well as swaps of any of the instruments listed above). Controls on operations in foreign exchange without any other underlying transaction (on spot or forward trading on the foreign exchange markets, on forward cover operations, etc.) are also included here.
    Controls on credit operations
    Commercial creditsCovers operations directly linked with international trade transactions or with the rendering of international services.
    Financial creditsThe category includes credits other than commercial credits granted by all residents, including by banks to nonresidents or vice versa.
    Guarantees, sureties, and financial backup facilitiesThe category includes sureties, guarantees, and financial backup facilities by residents to nonresidents and vice versa. It also includes guarantees and sureties, including securities pledged for payment or performance of a contract, such as warrants or avals, performance bonds, and standby letters of credit; and financial backup facilities, which are credit facilities used as a guarantee for independent financial operations.
    Controls on direct investmentRefers to investment for the purpose of establishing lasting economic relations both abroad by residents and in the country by nonresidents. These investments are essentially for the purpose of producing goods and services, and, in particular, investments that allow investor participation in the management of the enterprise. It includes the creation or extension of a wholly owned enterprise, subsidiary, or branch and the acquisition of full or partial ownership of anew or existing enterprise that results in effective influence over the operations of this enterprise.
    Controls on liquidation of direct investmentRefers to the transfer of principal, including the initial capital and capital gains, of a direct investment as defined above.
    Controls on real estate transactionsRefers to the acquisition of real estate not associated with direct investment. It would include, for example, investments of a purely financial nature in real estate or the acquisition of real estate for personal use.
    Controls on personal capital movementsCovers transfers initiated on behalf of private persons and intended to benefit another private person. It includes transactions involving property to which a promise of a return to the owner with payments of interest is attached (loans, settlements of debt in their country of origin by immigrants), or transfers free of charge to the beneficiary (gifts and endowments, loans, inheritances and legacies, and emigrants’ assets).
    Provisions specific to commercial banks and other credit institutionsDescribes regulations that are specific to these institutions, such as monetary, prudential, and foreign exchange controls. Inclusion of an entry in this part does not necessarily signify that the aim of the measure is to control the flow of capital. Some of these items (borrowing abroad, lending to nonresidents, purchase of locally issued securities denominated in foreign exchange, investment regulations) could merely be repetitions of the entries under respective categories of controls on capital and money market instruments, controls on credit operations, or direct investments when the same regulations apply to commercial banks as to other residents.
    Open foreign exchange position limitsThe item describes the existence and contents of regulations on certain commercial bank balance sheet items (including capital) or absolute limits covering commercial banks’ positions in foreign currencies (including gold).
    Provisions specific to institutional investorsDescribes controls specific to institutions, such as insurance companies and pension funds.
    Other restrictions imposed by securities lawsRefers to additional regulations on capital movements imposed by those laws, such as restrictions on the listing of foreign securities on local security markets.
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