WORLD ECONOMIC AND FINANCIAL SURVEYS Exchange Rate Arrangements and Currency Convertibility Developments and Issues Prepared by a Staff Team led by R. Barry Johnston with Mark Swinburne Alexander Kyei Bernard Laurens David Mitchem Inci Otker Susana Sosa Natalia Tamirisal INTERNATIONAL MONETARY FUND Washington, DC 1999 ©International Monetary Fund. Not for Redistribution © 1999 International Monetary Fund Production: IMF Graphics Section Figures: Theodore F. Peters, Jr. Typesetting: Joseph Ashok Kumar ISBN 1-55775-795-X ISSN 0258-7440 Price: US$25.00 (US$20.00 to full-time faculty members and students at universities and colleges) 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 E-mail:
[email protected] Internet:http://www.imf.org recycled paper ©International Monetary Fund. Not for Redistribution Contents Page Preface vii List of Abbreviations ix Part I I Overview 1 II Convertibility of Currencies for Current International Payments and Transfers 6 The IMF's Jurisdictional View of Exchange Restrictions 6 Trends in Exchange Controls on Payments for Current Account Transactions and Current Transfers 9 Coordinating Exchange and Trade Liberalization 11 Bilateralism and Regionalism 11 Procedures for Acceptance of Obligations of Article VIII, Sections 2, 3, and 4 12 III Controls on Capital Movements 14 Information on Capital Controls 14 Structure of Capital Controls 14 Trends in Controls on Capital Movements 17 Promoting