Virtual : Selected Topics in Managing Capital Flows (MCF)

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Qualifications: A strong background in international macroeconomics is an advantage. Knowledge of various external accounts data sets is also an advantage.
Target Audience: Middle-level officers/technical staff of central banks with at least two years of experience in external sector analysis, and monetary and financial policy analysis.
Certification requirement: Only participants who complete 80 percent of the sessions will receive a certificate of completion.

Capital account liberalization brings direct and indirect benefits to recipient economies.
Large capital inflows or reversals lead to volatile exchange rate movements, asset price fluctuations and large risk exposures.
These complications affect the conduct of monetary policy and could harm financial stability.
As economies become more integrated with global financial markets, appropriate frameworks and policy design for sequencing capital account liberalization and managing volatile capital flows become more important.
The course provides practical knowledge in understanding the benefits and risk exposures using the inter relationships between external accounts data, including Balance of Payments Statistics, International Investment Position, International Banking Statistics and other indicators.
Topical discussions include the institutional framework for dealing with capital flows, sequencing capital account liberalization and the effectiveness of capital flows management measures.

By the end of the course, participants will be able to:

understand the importance of Balance of Payments Statistics, International Investment Position, and International Banking Statistics in assessing risks inherent in cross-border transactions and investments;
recognize inter relationships and interpret various external accounts data;
identify causes and effects of volatile capital flows;
understand and assess institutional views on capital flows management tools, including capital controls; and
appreciate topical issues related to global capital allocation, phantom foreign direct investment (FDI) flows and the sequencing of capital account liberalization.