Search for other papers by Mr. Owen Evens in
Current site
Google Scholar
Search for other papers by Peter J. Quirk in
Current site
Google Scholar
Abstract
Issues relating to the movement of capital among countries have become central to the IMF’s role, as embodied in its Articles of Agreement, in the international monetary system. During the last biennial review of its surveillance activities concluded in April 1995, the IMF’s Executive Board agreed that financial market and capital account issues deserved more attention by the IMF and amended the 1977 surveillance decision to take into account more explicitly the role of capital flows.1 The Madrid Declaration of the Interim Committee of the IMF in October 1994 welcomed the growing trend toward currency convertibility and encouraged member countries to remove impediments to the flow of capital. These and other developments in the international exchange and payments system call for a review of the IMF’s potential role in monitoring capital account restrictions and encouraging capital account liberalization.2 This paper reviews developments and issues relating to capital account convertibility by IMF members and the implications for IMF policies and jurisdiction.
International Monetary Fund Copyright © 2010-2025. All Rights Reserved.