Use and Liberalisation of Capital Controls: Country Experiences and Issues

This paper reviews the issues involved in the use and liberalisation of capital controls, as experienced by some of the IMF member countries. Apart from reviewing the nature and scope of capital controls, it delves into the theoretical considerations in the use of capital controls, speed and sequencing of capital account liberalisation in the crisis-hit economies of Indonesia, Korea and Thailand. Lastly, it examines the crucial role of prudential regulation and a consistent monetary and exchange rate policy in the sequencing of liberalisation.

Market power in CEE banking sectors and the impact of the global financial crisis

The aim of this study is to undertake an up-to-date assessment of market power in Central and Eastern European banking markets and explore how the global financial crisis has affected market power and what has been the impact of foreign ownership. Three main results emerge. First, while there is some convergence in country-level market power during the pre-crisis period, the onset of the global crisis has put an end to this process. Second, bank-level market power appears to vary significantly with respect to ownership characteristics. Third, asset quality and capitalization affect differently the margins in the pre-crisis and the crisis periods. While in the pre-crisis period the impacts are similar for all banks regardless of ownership status, in the crisis period non-performing loans have a negative effect and capitalization a positive effect only for domestically-owned banks

Macro Policy Mix and Its Effects on Growth and the Real Exchange Rate–Empirical Evidence and GIMF Simulations

2. Cross-Country Evidence � 2 3. �Simulations Using the IMF’s Global Integrated Monetar

La integración financiera en América Central: Perspectivas y necesidades de ajuste

Se evalúan las actuales barreras al comercio de servicios financieros en los seis países de América Central que intentan celebrar un acuerdo de libre comercio con Estados Unidos (el Acuerdo de Libre Comercio entre Estados Unidos y América Central -Central American Free Trade Agreemenr- CAPTA) y se examinan los méritos relativos de la liberalización regional y multilateraL Aun cuando existen pocas barreras formales, las deficiencias en las normas reguladoras y de competencia, así como en los sistemas judiciales, restringen la participación de instituciones extranjeras en los sistemas financieros de la región. Una mayor presencia de tales instituciones podría respaldar otros objetivos de la liberalización comercial y de la inversión, aunque se requerirían diversos ajustes de la supervisión prudencial en los niveles nacionales y una mayor cooperación entre los miembros del CAPTA.

Foreign Exchange Intervention in Developing and Transition Economies

Based on evidence obtained from the IMF''s 2001 Survey on Foreign Exchange Market Organization, the author argues that, for several reasons, some central banks in developing and transition economies may be able to conduct foreign exchange intervention more effectively than the central banks of developed countries issuing the major international currencies. First, these central banks do not always fully sterilize their foreign exchange interventions. In addition, they issue regulations and conduct their foreign exchange operations in a way that increases the central bank''s information advantage and the size of their foreign exchange intervention relative to foreign exchange market turnover. Some of the central banks also use moral suasion to support their foreign exchange interventions.Exchange restrictions;Exchange rate stability;foreign exchange, exchange rate, foreign exchange intervention, foreign exchange market, exchange rate regime, exchange rate regimes, exchange rates, market access, exchange rate regime classification, de facto exchange rate regime, foreign currency, foreign exchange interventions, foreign exchange positions, exchange markets, foreign exchange markets, foreign exchange transactions, exchange transactions, exchange operations, floating exchange rate, foreign exchange operations, exchange rate volatility, exchange sales, floating exchange rate regimes, foreign exchange sales, currency boards, flexible exchange rate, foreign currencies, flexible exchange rate regimes, foreign exchange position, exchange rate policies, exchange purchases, exchange rate expectations, foreign exchange purchases, exchange rate risk, currency depreciation, exchange controls, foreign exchange controls, exchange auctions, fixed exchange rate, foreign exchange auctions, exchange arrangements, currency substitution, exchange rate pressures, fixed exchange rate regime, international settlements, floating exchange rate regime, exchange market intervention, exchange rate determination, exchange rate dynamics, foreign bonds, exchange market activity, foreign exchange risk, foreign exchange earnings, optimal exchange rate regime, exchange risk, exchange rate fluctuations, exchange rate developments, exchange rate policy, spot exchange rates, exchange rate data, exchange earnings, currency appreciation, market structures, flexible exchange rates, macroeconomic stability, exchange rate path, fixed exchange rate regimes

Foreign Exchange Market Organization in Selected Developing and Transition Economies

The foreign exchange market microstructures in developing and transition economies are characterized by the results from the IMF''s 2001 Survey on Foreign Exchange Market Organization. The survey found that these markets are usually unified onshore spot markets for U.S. dollars, where transactions are concentrated at the bank-customer level. The trading mechanisms are usually dealer or mixed dealer/auction markets; the degree of transparency is often low; settlement systems remain risky; and the scope for price discovery is variable.Developing countries;Transition economies;foreign exchange, foreign exchange market, exchange rate, exchange markets, foreign exchange markets, exchange rates, exchange rate regimes, exchange rate regime, foreign exchange auctions, exchange auctions, foreign exchange transactions, exchange transactions, interbank market, exchange rate regime classification, exchange rate risk, de facto exchange rate regime, floating exchange rate regimes, floating exchange rate, exchange rate volatility, settlement risk, currency exchange, foreign exchange operations, prudential regulation, flexible exchange rate regimes, flexible exchange rate, exchange rate flexibility, bank accounts, exchange operations, banking, exchange restrictions, multiple currency practices, bank customer, exchange rate pressures, limited exchange rate flexibility, bank of international settlements, currency substitution, currency boards, exchange rate fluctuations, currency transactions, capital mobility, banking system, currency depreciation, working capital, exchange arrangements, exchange rate arrangements, prevailing exchange rates, bank of international settlements (bis), bank of thailand, exchange rate dynamics, currency appreciation, determinant of exchange rate, exchange options, exchange market activity, excess demand, foreign exchange risk, bank runs, bank account, import bank, exchange risk, correspondent bank, exchange rate adjustment, bank management, bank vault, exchange rate adjustments, exchange rate determination, floating exchange rates, multiple exchange rate, exchange rate classification, prevailing exchange rate, exchange controls, segmentation, exchange rate risks, history of exchange rate