Sir:

SINCE critics often blame the International Monetary Fund for being inflexible, it is refreshing that S.M. Mohd Idris' "Open capital market route to disaster" (NST, Feb 13) accuses the IMF of being too adaptable.

In 1945, open capital markets were not realistic in the context of a fixed exchange rate system and immature capital markets in most countries. But the global economy has changed dramatically since then, with rapid growth in global trade, rising sophistication of domestic capital markets and more flexible exchange rate regimes.

The IMF has sought to continually adapt itself to this changing environment, including by increasing its emphasis on an orderly liberalisation of capital flows.

We view such liberalisation as a worthy goal for all countries, but have never sought to make it an obligation of membership.