Currency Convertibility and the Fund: Review and Prognosis

April 1, 1996

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper reviews experience with currency convertibility on both the current and capital accounts, with particular attention to the Fund’s concepts and policy implications. After discussing the basic concepts of convertibility, the paper reviews the experience with convertibility in three groups of Fund members--industrial countries, developing countries, and transition countries. The paper also discusses some policy options designed to encourage acceptance of convertibility by Fund members that have not yet done so.

Subject: Balance of payments, Capital controls, Capital flows, Current account, Exchange restrictions, Foreign exchange, Multiple currency practices

Keywords: article XIV, Baltics, Capital controls, capital convertibility, capital convertibility need, Capital flows, capital restriction, capital transaction, Central and Eastern Europe, convertibility need, Current account, current account restriction, Exchange restrictions, Multiple currency practices, official rate, parallel rate, rate, transition country, WP

Pages:
64
Volume:
1996
DOI:
---
Issue:
039
Series:
Working Paper No. 1996/039
Stock No:
WPIEA0391996
ISBN:
9781451845785
ISSN:
1018-5941

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