IMF Working Papers

Adopting Currency Convertibility: Experiences and Monetary Policy Considerations for Advanced Developing Countries

ByPeter J. Quirk

August 1, 1994

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Peter J. Quirk "Adopting Currency Convertibility: Experiences and Monetary Policy Considerations for Advanced Developing Countries", IMF Working Papers 1994, 096 (1994), accessed 12/7/2025
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 analyses issues for developing countries with structurally sound balance of payments that are considering a move to full currency convertibility. The main experiences of industrial countries in their decontrol of international capital transactions are reviewed, with an emphasis on the implications for monetary policy. The paper deals both with stabilization, and the prudential issues, which are especially important in view of the potential for speculative bubbles. Respective roles of the international organizations, IMF, OECD, and the GATT, in assisting the capital liberalization process are discussed.

Subject: Balance of payments, Capital controls, Capital inflows, Currencies, Currency convertibility, Domestic credit, Exchange rates, Foreign exchange, Money

Keywords: Capital controls, capital convertibility, Capital inflows, capital liberalization, convertibility, credit rationing, Currency convertibility, currency liberalization, Domestic credit, exchange control apparatus, exchange market intervention, exchange rate, Exchange rates, interest rate reform, liberalization, liberalization of currency control, liberalization process, market, market opening measure, monetary policy, New Zealand liberalization, sequencing convertibility, WP

  • Pages:

    28

  • Volume:

    1994

  • DOI:

    ---

  • Issue:

    096

  • Series:

    Working Paper No. 1994/096

  • Stock No:

    WPIEA0961994

  • ISBN:

    9781451950052

  • ISSN:

    1018-5941

Notes

Discusses respective roles of the international organizations, IMF, OECD, and the GATT, in assisting the capital liberalization process.

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