Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Back Matter

Back Matter

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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APPENDIX: COUNTRY TABLE MATRIX
Status under IMF Articles of Agreement
Article VIII
Article XIV
Exchange Measures
Restrictions and/or multiple

currency practices
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)
Other security restrictions
Exchange Arrangement
Currency
Other legal tender
Exchange rate structure
Unitary
Dual
Multiple
Classification
Exchange arrangement with no separate legal tender
Currency board arrangement
Conventional pegged arrangement
Pegged exchange rate within horizontal bands
Crawling peg
Crawling band
Managed floating with no predetermined path for the exchange rate
Independently floating
Exchange tax
Exchange subsidy
Forward exchange market
Official cover of forward operations
References to legal instruments and hyperlinks
Arrangements for Payments and Receipts
Prescription of currency requirements
Controls on the use of domestic currency
For current transactions and payments
For capital transactions
Transactions in capital and money market instruments
Transactions in derivatives and other instruments
Credit operations
Use of foreign exchange among residents
Payments arrangements
Bilateral payments arrangements
Operative
Inoperative
Regional arrangements
Clearing agreements
Barter agreements and open accounts
Administration of control
Payments arrears
Official
Private
Controls on trade in gold (coins and/or bullion)
On domestic ownership and/or trade
On external trade
Controls on exports and imports of banknotes
On exports
Domestic currency
Foreign currency
On imports
Domestic currency
Foreign currency
References to legal instruments and hyperlinks
Resident Accounts
Foreign exchange accounts permitted
Held domestically
Approval required
Held abroad
Approval required
Accounts in domestic currency held abroad
Accounts in domestic currency convertible into foreign currency
References to legal instruments and hyperlinks
Nonresident Accounts
Foreign exchange accounts permitted
Approval required
Domestic currency accounts
Convertible into foreign currency
Approval required
Blocked accounts
References to legal instruments and hyperlinks
Imports and Import Payments
Foreign exchange budget
Financing requirements for imports
Minimum financing requirements
Advance payment requirements
Advance import deposits
Documentation requirements for

release of foreign exchange for imports
Domiciliation requirements
Preshipment inspection
Letters of credit
Import licenses used as exchange licenses
Other
Import licenses and other nontariff measures
Positive list
Negative list
Open general licenses
Licenses with quotas
Other nontariff measures
Import taxes and/or tariffs
Taxes collected through the exchange system
State import monopoly
References to legal instruments and hyperlinks
Exports and Export Proceeds
Repatriation requirements
Surrender requirements
Surrender to the central bank
Surrender to authorized dealer
Financing requirements
Documentation requirements
Letters of credit
Guarantees
Domiciliation
Preshipment inspection
Other
Export licenses
Without quotas
With quotas
Export taxes
Collected through the exchange system
Other export taxes
References to legal instruments and hyperlinks
Payments for Invisible Transactions and Current Transfers
Controls on these transfers
Trade-related payments
Prior approval
Quantitative limits
Indicative limits/bona fide test
Investment-related payments
Prior approval
Quantitative limits
Indicative limits/bona fide test
Payments for travel
Prior approval
Quantitative limits
Indicative limits/bona fide test
Personal payments
Prior approval
Quantitative limits
Indicative limits/bona fide test
Foreign workers’ wages
Prior approval
Quantitative limits
Indicative limits/bona fide test
Credit card use abroad
Prior approval
Quantitative limits
Indicative limits/bona fide test
Other payments
Prior approval
Quantitative limits
Indicative limits/bona fide test
References to legal instruments and hyperlinks
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirements
Surrender requirements
Surrender to the central bank
Surrender to authorized dealer
Restrictions on use of funds
References to legal instruments and hyperlinks
Capital Transactions
Controls on capital transactions
Repatriation requirements
Surrender requirements
Surrender to the central bank
Surrender to authorized dealer
Controls on capital and money market instruments
On capital market securities
Shares or other securities of a participating nature
Purchase locally by nonresidents
Sale or issue locally by nonresidents
Purchase abroad by residents
Sale or issue abroad by residents
Bonds or other debt securities
Purchase locally by nonresidents
Sale or issue locally by nonresidents
Purchase abroad by residents
Sale or issue abroad by residents
On money market instruments
Purchase locally by nonresidents
Sale or issue locally by nonresidents
Purchase abroad by residents
Sale or issue abroad by residents
On collective investment securities
Purchase locally by nonresidents
Sale or issue locally by nonresidents
Purchase abroad by residents
Sale or issue abroad by residents
Controls on derivatives and other instruments
Purchase locally by nonresidents
Sale or issue locally by nonresidents
Purchase abroad by residents
Sale or issue abroad by residents
Controls on credit operations
Commercial credits
By residents to nonresidents
To residents from nonresidents
Financial credits
By residents to nonresidents
To residents from nonresidents
Guarantees, sureties, and financial backup facilities
By residents to nonresidents
To residents from nonresidents
Controls on direct investment
Outward direct investment
Inward direct investment
Controls on liquidation of direct investment
Controls on real estate transactions
Purchase abroad by residents
Purchase locally by nonresidents
Sale locally by nonresidents
Controls on personal capital transactions
Loans
By residents to nonresidents
To residents from nonresidents
Gifts, endowments, inheritances, and legacies
By residents to nonresidents
To residents from nonresidents
Settlement of debts abroad by immigrants
Transfer of assets
Transfer abroad by emigrants
Transfer into the country by immigrants
Transfer of gambling and prize earnings
References to legal instruments and hyperlinks
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutions
Borrowing abroad
Maintenance of accounts abroad
Lending to nonresidents (financial or commercial credits)
Lending locally in foreign exchange
Purchase of locally issued securities denominated in foreign exchange
Differential treatment of deposit accounts in foreign exchange
Reserve requirements
Liquid asset requirements
Interest rate controls
Credit controls
Differential treatment of deposit accounts held by nonresidents
Reserve requirements
Liquid asset requirements
Interest rate controls
Credit controls
Investment regulations
Abroad by banks
In banks by nonresidents
Open foreign exchange position limits
On resident assets and liabilities
On nonresident assets and liabilities
Provisions specific to institutional investors
Insurance companies
Limits (max.) on securities issued by nonresidents
Limits (max.) on investment portfolio held abroad
Limits (min.) on investment portfolio held locally
Currency-matching regulations on assets/liabilities composition
Pension funds
Limits (max.) on securities issued by nonresidents
Limits (max.) on investment portfolio held abroad
Limits (min.) on investment portfolio held locally
Currency-matching regulations on assets/liabilities composition
Investment firms and collective investment funds
Limits (max.) on securities issued by nonresidents
Limits (max.) on investment portfolio held abroad
Limits (min.) on investment portfolio held locally
Currency-matching regulations on assets/liabilities composition
References to legal instruments and hyperlinks
Changes during 2006
Status under IMF Articles of Agreement
Exchange measures
Exchange arrangement
Arrangements for payments and receipts
Resident accounts
Nonresident accounts
Imports and import payments
Exports and export proceeds
Payments for invisible transactions and current transfers
Proceeds from invisible transactions and current transfers
Capital transactions
Controls on capital and money market instruments
Controls on derivatives and other instruments
Controls on credit operations
Controls on direct investment
Controls on liquidation of direct investment
Controls on real estate transactions
Controls on personal capital transactions
Provisions specific to the financial sector
Provisions specific to commercial banks and other credit institutions
Provisions specific to institutional investors
Changes during 2007
Status under IMF Articles of Agreement
Exchange measures
Exchange arrangement
Arrangements for payments and receipts
Resident accounts
Nonresident accounts
Imports and import payments
Exports and export proceeds
Payments for invisible transactions and current transfers
Proceeds from invisible transactions and current transfers
Capital transactions
Controls on capital and money market instruments
Controls on derivatives and other instruments
Controls on credit operations
Controls on direct investment
Controls on liquidation of direct investment
Controls on real estate transactions
Controls on personal capital transactions
Provisions specific to the financial sector
Provisions specific to commercial banks and other credit institutions
Provisions specific to institutional investors
1

In addition to the 185 IMF member countries, the report also includes Hong Kong SAR (People’s Republic of China), as well as Aruba and the Netherlands Antilles (both Kingdom of the Netherlands).

2

These include (1) a change in the name of the category “Restrictions imposed in accordance with UN sanctions” to “Other security restrictions” under category II.2 (“International Security Restrictions”); (2) the addition of a “Reference to legal instruments and hyperlinks” at the end of the section on “Exchange Measures”; (3) the inclusion of two subcategories—“Surrender to the central bank” and “Surrender to authorized dealers”—in the category “Surrender requirements” under categories “Export and Export Proceeds” and “Proceeds from Invisible Transactions and Current Transfers”; (4) the inclusion of the categories “Repatriation requirements” and “Surrender requirements” in the section on “Capital Transactions”; (5) reclassification of exchange arrangements of countries in currency unions to reflect the behavior of the common currency; and (6) the explicit inclusion of the criteria for the classification of the exchange rate structure.

3

The information on exchange measures imposed for security reasons is based solely on the information directly provided by the country authorities.

4

If restrictions in any country have changed since the date of issuance of the relevant document (i.e., countries have implemented changes after this date), these changes will be reflected in the next edition of this report.

5

The IMF also strengthened its internal procedures for the classifications of the exchange rate arrangements and reclassified several previously contested cases.

6

The AREAER distinguishes between controls that are prudential in nature and controls that are applied to the financial sector but are akin to capital controls. The report covers only cross-border or cross-currency prudential regulations. Hence, it does not cover prudential measures that do not differentiate between domestic currency and foreign exchange and/or residents and nonresidents.

7

The categories comprise (1) exchange arrangement with no separate legal tender, (2) currency board arrangement, (3) conventional pegged arrangement, (4) pegged exchange rate within horizontal bands, (5) crawling peg, (6) crawling band, (7) managed floating with no predetermined path for the exchange rate, and (8) independently floating.

8

The technical reclassification involved Guinea and República Bolivariana de Venezuela, their exchange rate structures having been reclassified as dual, while the exchange rate structures of Belize, Botswana, Cambodia, and Turkmenistan became unitary.

9

On June 3, 2006, the State Union of Serbia and Montenegro ceased to exist following Montenegro’s declaration of independence.

10

For three countries, information is not available on the existence of exchange restrictions or MCPs.

11

Information on exchange restrictions and MCPs in the AREAER does not report on whether such exchange restrictions or MCPs have been approved by the IMF.

12

See the Board paper for information, “Article VIII Acceptance by IMF Members—Recent Trends and Implications for the Fund, May 16, 2006,” www.imf.org/external/pp/longres.aspx?id=568.

13

The standard review of the exchange systems of some of these countries was under way in 2006.

14

A member should notify the IMF before imposing such measures. The notifications are immediately circulated to the Board. The member may assume that the IMF has no objection unless the IMF informs the member otherwise within 30 days of the notification. The IMF’s approval of an exchange restriction pursuant to Decision No. 144-(52/51) is granted for an unlimited period of time.

15

The following transactions were exempted from the URR: (1) direct investment, government loans, and investments in immovable assets; (2) foreign loans signed prior to December 19, 2006; (3) sales of foreign exchange agreed to before December 19, 2006; (4) interbank transactions on their own account; (5) foreign currencies sold or exchanged by embassies and international organizations; (6) rollover of hedging swap transactions; (7) foreign currency loans or foreign currencies from the issuance of debt instruments; (8) foreign currencies for the purchase of nonperforming loans or for payments of guarantee obligations under court order; and (9) traveler’s checks and foreign banknotes.

16

Capital controls and prudential measures are highly intertwined owing to the many overlaps in their application. For example, some of the prudential measures (such as application of discriminatory reserve requirements to deposit accounts held by residents and nonresidents) can actually be regarded as capital controls because they distinguish between transactions with residents and nonresidents and hence influence capital flows.

17

Inclusion of an entry in this category does not necessarily indicate that the aim of the measure is to control the flow of capital.

18

See, for instance, Ariyoshi, and others, Capital Controls: Country Experiences with Their Use and Liberalization, IMF Occasional Paper No. 190 (Washington: International Monetary Fund, 2000).

19

This type of tax is often called a “Tobin tax,” as the idea of an international currency transactions tax was first advanced by the late economist James Tobin (“A Proposal for Monetary Reform,” Eastern Economic Journal, Volume IV, No. 3–4, July/October 1978, pp. 153–59), who proposed a small tax on all foreign exchange dealings. He advocated putting “sand in the wheels of international finance” by increasing transaction costs. Because the tax burden increases with the frequency of transactions carried out, theoretically short-term investments are discouraged, whereas trade credit, FDI, and longer-term instruments in general are affected only marginally.

20

The definition of current payments and transfers in the IMF’s Articles of Agreement does not fully correspond to the balance of payments definition. It also includes normal short-term banking and credit facilities, moderate amounts for amortization of loans, and depreciation of direct investments.

21

URRs may also be used to limit capital outflows by making them more sensitive to domestic interest rates. For example, a 100% URR imposed on banks for capital outflows undertaken on their own account would lead to a loss of double the interest income of the equivalent domestic currency transaction, minus the interest income derived from the foreign currency transaction.

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