Front Matter

International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2002
    • ShareShare
    Show Summary Details

    Annual Report


    Exchange Arrangements and Exchange Restrictions


    © 2002 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 Peridicals — 2. Foreign exchange — Control — Periodicals. 1. Title

    K4440.A 13 157 [date] 341.7’51 79-644506

    ISSN 0250-7366

    ISBN 9781589061255

    Price: US$110.00

    (US$55.00 to full-time university faculty members and students)

    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



    recycled paper

    Letter of Transmittal to Members and Governors of the Fund

    August 30, 2002

    Dear Sir or Madam:

    I have the honor of transmitting to you a copy of the International Monetary Fund’s Annual Report on Exchange Arrangements and Exchange Restrictions, 2002, 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 would like to express our appreciation to the countries for their cooperation in the preparation of the Report.

    Sincerely yours,

    Horst Köhler

    Chairman of the Executive Board

    and Managing Director


    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.


    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 staff 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 directed by Shogo Ishii and comprising Kyung-Mo Huh, Virgilio A. Sandoval, and Harald Anderson. 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 Esha Ray of the External Relations Department and was produced by Mr. Anderson and the IMF Graphics Section.



    Atlantic, Caribbean, and Pacific countries


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


    ASEAN free trade area (see ASEAN, below)


    Asian monetary unit


    Australia–New Zealand Closer Economic Relations and Trade Agreement


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


    Agreement of Textiles and Clothing


    Central Bank of West African States; the West African states are Benin, Burkina Faso, Côte d’Ivoire, Guinea–Bissau. Mali, Niger, Senegal, and Togo


    Bank of Central African States; the Central African states are Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea, and Gabon


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


    Common agricultural policy (of the EU)


    Caribbean Community and Common Market (integrated by Antigua and Barbuda, Barbados. Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat. St. Kitts and Nevis, St, Lucia, St. Vincent and the Grenadines, Suriname, and Trinidad and Tobago). The Bahamas is also a member of CARICOM, but it does not participate in the Common Market.


    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 Principe)


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


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


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


    Common effective preferential tariff of the ASEAN free trade zone


    Common external tariff


    Communauté financiére d’Afrique (administered by the BCEAD) and Coopération financière en Afrique centrale (administered by the BEAC)


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


    Common Monetary Area (a single exchange control territory comprising Lesotho, Namibia. South Africa, and Swaziland)


    Caribbean Multilateral Clearing Facility


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


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


    East African Community


    European Central Bank


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


    Eastern Caribbean Currency Union


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


    European Coal and Steel Community


    European economic area


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


    European monetary system


    European Economic and Monetary Union


    Exchange rate mechanism (of the EMS)


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


    Financial Action Task Force on Money Laundering (of the OECD; integrated by Argentina; Australia; Austria; Belgium; Brazil; Canada; Denmark; European Commission; Finland; France; Germany; Greece; the GCC; China, Hong Kong SAR; Iceland; Ireland; Italy; Japan; Luxembourg; Mexico; Netherlands; New Zealand; Norway; Portugal; Singapore: Spain; Sweden; Switzerland; Turkey; United Kingdom; and United States).


    Former Soviet Union


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


    Generalized system of preferences


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


    Letter of credit


    London interbank offered rate


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


    Multifiber Arrangement


    Most favored nation


    Ministry of Finance


    North American Free Trade Agreement


    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, Slovak Republic, Spain, Sweden, Switzerland, Turkey, United Kingdom, and United States)


    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)


    Open general license


    Pacific Agreement on Closer Economic Relations (of the Pacific Islands Forum; integrated by Australia, Cook Islands. Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, New Zealand, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu)


    Pacific Regional Trade Agreement (of the Pacific Islands Forum)


    Pacific Island Countries Trade Agreement (of the Pacific islands Forum; integrated by Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu)


    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)


    Regional Integration Facilitation Forum (formerly the Cross–Border Initiative; integrated by Burundi, Comoros, Kenya, Madagascar, Malawi, Mauritius, Namibia, Rwanda, Seychelles, Swaziland, Tanzania, Uganda, Zambia.. and Zimbabwe)


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


    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)


    Special drawing rights


    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)


    Central African Customs and Economic Union (integrated by Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea, and Gabon)


    United Nations


    National Union for the Total Independence of Angola


    Value–added tax


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


    West African Monetary Agency (formerly WACI–I)


    World Trade Organization

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


    The report provides a detailed description of the exchange arrangements and exchange/trade restrictions of individual IMF member countries and Hong Kong SAR, as well as Aruba and the Netherlands Antilles, for which the Kingdom of the Netherlands has accepted the IMF Articles of Agreement. In general, the description relates to the exchange and trade systems as of the end of 2001, but, in appropriate cases, reference is made to significant developments that took place in early 2002. (A description of the exchange and trade system of East Timor, which joined the IMF on July 23, 2002, will be included in the report for 2003.)

    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 2001 and early 2002.

    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 frame- work for capital transactions. The information is drawn from the exchange arrangements and exchange restrictions database maintained by the IMF. The country chapters present an abstract of the relevant information that is available to the IMF. The report also includes the official IMF classification table on Exchange Rate Arrangements and Anchors of Monetary Policy (Appendix I). This classification system is based on the information available on the operations of members’ de facto policies, as analyzed by IMF staff, which may differ from countries’ officially announced arrangements. The table on Summary Features of Exchange Arrangements and Regulatory Frameworks for Current and Capital Transactions in Member Countries (Appendix II) provides an overview of the characteristics of the exchange and trade systems of IMF member countries. The Country Table Matrix (Appendix III) provides a complete listing of the rubrics used in the database.

    When it is unclear whether a particular category or measure exists, because pertinent information is not available at the time of publication, the category is displayed with the notation "n.a." If a measure is known to exist but specific information on it is not available, the category is displayed with the notation "yes." 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 have provided the IMF with the information that a category or an item is not regulated, these are marked by "n.r."


    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 structureIf there is one exchange rate, the system is called unitary; if there are more than one exchange rates that may be used simultaneously for different purposes and/or by different entities, the system is called dual or multiple. Different effective exchange rates resulting from exchange taxes or subsidies are not included in this category,
    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 value of the currency is adjusted periodically in small amounts at a fixed, preannounced rate or in response to changes in selective quantitative indicators.
    Crawling bandThe value of the currency is maintained within certain fluctuation margins around a central rate that is 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 taxForeign exchange transactions are subject to a special tax. Bank commissions charged on foreign exchange transactions are not included in this category; rather, they are listed under the exchange arrangement classification.
    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 for transactions with other countries. When a country has concluded payments agreements with other countries, the terms of these agreements often lead to a prescription of currency for specified categories of payments to, and receipts from, the countries concerned. The category includes information on the use of domestic currency in transactions between residents and nonresidents. both domestically and abroad. The category also indicates whether there are any restrictions on the use of foreign currency among residents_
    Payments arrangements
    Bilateral payments arrangementsTwo countries conclude an agreement to prescribe specific rules for payments to each other, including cases where 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 payments agreement.
    Clearing agreementsThe official bodies of two or more countries agree to offset with some regularity the balances that arise from payments to each other as a result of the 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 monitoring policy, administering exchange controls, and determining the extent of delegation of powers to outside agencies (often banks are authorized to effect foreign exchange transactions),
    International security restrictionsRestrictions on payments and transfers in connection with international transactions imposed by member countries for reasons of national or international security.
    In accordance with IMF Executive Board Decision No. 144-(52/51)International security restrictions on the basis of IMF Executive Board Decision No. 144-(52/5l). which establishes 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.
    Payments arrearsOfficial or private residents of a member default on their payments or transfers in foreign exchange to nonresidents. This category includes only the situation in which domestic currency is available for 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 by private parties due to bankruptcy of the party concerned.
    Controls on trade in gold (coins and/or bullion)The existence of separate rules for trading in 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. Where 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
    Indicates whether resident accounts that are maintained in the national currency or in foreign currency. locally or abroad, are allowed and describes how they are treated 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, whether residents are allowed to open foreign exchange accounts with or without approval from the exchange control authority: whether these accounts may be held domestically or abroad; or whether the balances on accounts held by residents in domestic currency may be converted into foreign currency.
    Nonresident Accounts
    Indicates whether local nonresident accounts maintained in the national currency or in foreign currency are allowed and describes how they are treated 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 accountsAccounts of nonresidents, usually in domestic currency. Regulations prohibit or limit the conversion and/or transfer of the balances of such accounts.
    Imports and Import Payments
    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., prior allocation of a certain amount of foreign exchange, usually on an annual basis, for the importation of specific types of goods and/or 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 creditParties are obligated to use letters of credit as a form of payment for their imports.
    Import licenses used as exchange licensesImport licenses are not used for trade purposes but to restrict the availability of foreign exchange for legitimate trade.
    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 licensesIndicates arrangements whereby certain imports or other international transactions are exempt from the restrictive application of licensing requirements.
    Licenses with quotasRefers 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 measuresMay include the prohibition to import certain goods from all countries or all goods from a certain country. Several other nontariff measures are used by members (e.g., phyto-sanitary examinations, setting of standards, and so forth), but these are not covered fully in the 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 products or they are limited in their activity.
    Exports and Export Proceeds
    Describes restrictions on the use of export proceeds, as well as regulations on exports.
    Repatriation requirementsThe obligation of exporters to repatriate export proceeds.
    Surrender requirementsRegulations 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 as in the case of imports are used.
    Export licensesRestrictions on the right of residents to export goods. These restrictions may take the form of quotas (where a certain quantity of shipment abroad is allowed) or the absence of quotas (where the licenses are issued at the discretion of the foreign trade control authority).
    Export taxesA brief description of the export tax system. including any taxes that are levied on the foreign exchange earned by exporters.
    Payments for Invisible Transactions and Current Transfers
    Describes the procedures for effecting payments abroad in connection with 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 nature 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 to transactions for which quantitative limits have not been established.
    Trade–related paymentsIncludes 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 paymentsincludes profits/dividends; interest payments (including interest on debentures, mortgages. and so forth): amortization of loans or depreciation of foreign direct investments; and payments and transfers of rent.
    Payments for travelIncludes international travel for business, medical treatment, tourism, and so forth.
    Personal paymentsIncludes medical expenditures abroad: study expenses abroad: pensions (including regulations on payments and transfers of pensions by both state and private pension providers on behalf of nonresidents, as well as the transfer of pensions due to residents living abroad); and family maintenance/alimony (including regulations on payments and transfers abroad of family maintenance/alimony by residents).
    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 paymentsIncludes subscription/membership fees, authors’ royalties, consulting/legal fees, and so forth.
    Proceeds from Invisible Transactions and Current Transfers
    Describes regulations governing exchange receipts derived from transactions in invisibles—including descriptions of any limitations on their conversion into domestic currency—and the use of those receipts.
    Repatriation requirementsThe definitions 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 types of hank accounts.
    Capital Transactions
    Describes regulations influencing both inward and outward capital flows. The concept of controls on capital transactions is interpreted broadly. Thus, controls on capital transactions include prohibitions; need for prior approval, authorization, and notification; dual and multiple exchange rates; discriminatory taxes; and reserve requirements or interest penalties imposed by the authorities that regulate the conclusion or execution of transactions or transfers. or the holding of assets at home by nonresidents and abroad by residents. The coverage of the regulations applies to receipts as well as to payments and to actions initiated by nonresidents and residents. In addition, because of the close association with capital transactions, information is also provided on local financial operations conducted in foreign currency, describing specific regulations in force that limit residents and nonresidents issuing securities denominated in foreign currency or, generally, limitations on contract agreements expressed in foreign exchange.
    Controls on capital and money market instrumentsRefers to public offerings or private placements on primary markets or their listing on secondary markets.
    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 natureIncludes transactions involving shares and other securities of a participating nature if they are not effected for the purpose of acquiring a lasting economic interest in the management of the enterprise concerned. Investment for the purpose of acquiring a lasting economic interest is treated under foreign 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 short- term instruments, such as certificates of deposit and bills of exchange. The category also includes treasury bills and other short-term government paper, banker’s acceptances, commercial papers, 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, and so forth) are also included.
    Controls on credit operations
    Commercial creditsCovers operations directly linked with international trade transactions or with the rendering of international services.
    Financial creditsincludes credits other than commercial credits granted by all residents, including banks, to nonresidents or vice versa.
    Guarantees, sureties, and financial backup facilitiesIncludes those provided and vice versa. It also includes securities pledged for payment or performance of a contract—such as warrants. performance bonds, and standby letters of credit—and financial backup facilities that are credit facilities used as a guarantee for independent financial operations.
    Controls on direct investmentRefers to investments for the purpose of establishing lasting economic relations both abroad by residents and in the country by nonresidents. These investments are essentially for purposes of producing goods and services, and, in particular. investments that allow investor participation in the management of the enterprise. The category includes the creation or extension of a wholly owned enterprise, subsidiary, or branch and the acquisition of full or partial ownership of a new or existing enterprise that results in effective influence over the operations of the enterprise.
    Controls on liquidation of direct investmentRefers to the transfer of principal, including the initial capital and capital gains, of a foreign direct investment as defined above.
    Controls on real estate transactionsRefers to the acquisition of real estate not associated with direct investment. includes. for example, investments of a purely financial nature in real estate or the acquisition of real estate for personal use.
    Controls on personal capital transactionsCovers transfers initiated on behalf of private persons and intended to benefit other private persons. It includes transactions involving property to which the promise of a return to the owner with payments of interest is attached (loans. settlements of debt in their country of origin by immigrants), and transfers effected 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 category 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) may 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 well as to other residents.
    Open foreign exchange position limitsDescribes regulations on certain commercial hank balance sheet items (including capital) and on 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 controls imposed by securities lawsRefers to additional regulations on capital transfers imposed by law, such as controls on the listing of foreign securities on local security markets.

      Other Resources Citing This Publication