- Akira Ariyoshi, Andrei Kirilenko, Inci Ötker, Bernard Laurens, Jorge Canales Kriljenko, and Karl Habermeier
- Published Date:
- May 2000
© 2000 International Monetary Fund
Production: IMF Graphics Section
Typesetting: Joseph Ashok Kumar
Capital controls: country experiences with their use and liberalization Akira/Ariyoshi… [et al.].—Washington, D.C.: International Monetary Fund, 2000.
p. cm.—(Occasional paper, ISSN 0251-6365; no. 190)
Glossary of abbreviations.
Prepared by Akira Ariyoshi, Karl Habermeier, Bernard Laurens, İnci ötker-Robe, Jorge Iván Canales-Kriljenko, and Andrei Kirilenko.
Includes bibliographical references.
1. Monetary policy. 2. Capital movements. 3. Capital account. 4. Foreign exchange rates. 5. Capital market. 6. Financial crises. 7. Risk management. I. Ariyoshi, Akira. II. International Monetary Fund. III. Occasional papers (International Monetary Fund); 190. HG230.3.C364 2000
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Statistical Appendix Tables
Countries with Controls on Short-Term Capital Inflows
Countries with Selective Controls on Outflows and with Extensive Controls
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 ihun hall the final digit shown, or that the item does not exist;
– between years or months (i.e., 1997–98 or January-June) to indicate the years or months covered, including the beginning and ending years or months;
/ between years or months (i.e.. 1997/98) 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.
The role that large reversals of capital inflows have played in the recent currency crises in Asia, Russia, and Latin America has led to a renewed interest in how capital controls and other policies could help reduce the volatility of capital flows. This paper aims to develop a deeper understanding of the role that capital controls may play in coping with volatile movements of capital and the issues that arise in the rapid liberalization of the capital account by reviewing the experiences of countries with the use of capital controls and liberalization of the capital account under different circumstances, including crisis situations. It also studies the relationship between prudential policies and capital controls, and illustrates how better prudential practices and accelerated financial reforms could address the risks involved in cross-border transactions, thus providing an alternative to capital controls.
The material in this paper was originally prepared for discussion in the IMF’s Executive Board in September 1999. It was prepared under my direction, by a staff team led by Akira Ariyoshi and consisting of Karl Habermeier, Bernard Laurens, Inci Otker-Robe, Jorge Iván Canales-Kriljenko, and Andrei Kirilenko; Matthew Fleming provided research assistance and Francine Koch, Claudia Mariel, Joanna Meza-Cuadra, and Fabienne Piccinni provided secretarial support. Marina Primorac edited the manuscript and coordinated the production of the publication.
The paper has benefited from comments of Executive Directors, colleagues in MAE, and in other departments in the IMF. The views expressed in the paper are those of the IMF staff and do not necessarily reflect the views of national authorities or IMF Executive Directors.
Monetary and Exchange Affairs Department
Glossary of AbbreviationsADR
American depository receiptALLL
Allowance for loan and lease lossesAREAER
Annual Report on Exchange Arrangements and Exchange RestrictionsATTR
Allocated Transfer Risk ReservesNBER
National Bureau of Economic ResearchBIBF
Bangkok International Banking FacilitiesBIS
Bank for International SettlementsCAMEL
Capital, Asset, Management, Equity, LiquidityEC
European Monetary UnionERM
Exchange Rate MechanismESAF
Enhanced Structural Adjustment ProgramFEBC
Foreign Exchange Bearer Certificates of DepositFII
foreign institutional investorFIYF
Fixed Income Yield FundsFOGADE
Venezuelan Deposit Insurance AgencyGAAP
Generally Accepted Accounting PrinciplesGDP
Gross Domestic ProductGDR
Global Depository ReceiptGKO
Russian treasury billsIAIS
International Association of Insurance SupervisorsICERC
Interagency Country Exposure CommitteeIOSCO
International Organization of Securities CommissionsLIBOR
London Interbank Offered RateMESDAQ
Malaysia Exchange of Securities Dealing and Automated QuotationMICEX
Moscow Interbank Currency ExchangeMSCI
Morgan Stanley Capital IndexNBFI
nonbank financial institutionNRI
Russian long-term federal bondsSDDS
Special Data Dissemination StandardURR
unremunerated reserve requirement