Andrés Fernández, Mr. Michael W Klein, Mr. Alessandro Rebucci, Mr. Martin Schindler, and Martin Uribe
This paper presents a new dataset of capital control restrictions on both inflows and outflows of 10 categories of assets for 100 countries over the period 1995 to 2013. Building on the data in Schindler (2009) and other datasets based on the analysis of the IMF’s Annual Report on Exchange Arrangements and Exchange Restrictions (AREAER), this dataset includes additional asset categories, more countries, and a longer time period. The paper discusses in detail the construction of the dataset and characterizes the data with respect to the prevalence and correlation of controls across asset categories and between controls on inflows and controls on outflows, the aggregation of the separate categories into broader indicators, and the comparison of this dataset with other indicators of capital controls.
1993 and maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions; controls on capital account transactions are minor, and relate mostly to a prohibition on domestic borrowing by nonresidents. Lebanon is on the standard 12–month cycle, but interim staff reports are issued for information of the Executive Board in between Article IV consultations. The last such report (IMF Country Report No. 04/313) was issued on September 2004. The 2005 Article IV consultation was delayed by political
Control Commission, senior government officials, the director of the electricity company, and representatives of the banking sector, the business community, the trade union, and donor countries.
Lebanon accessed Fund resources under Emergency Post-Conflict Assistance (EPCA) (25 percent of quota or SDR 50.75 million) in April 2007 . Lebanon has accepted the obligations of Article VIII, Sections 2, 3, and 4 in 1993 and maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions; controls on capital
largest exchange rate fluctuations. It is difficult, however, to quantify the effectiveness of such restrictions in countries where they exist. Rwanda and Tanzania, for example, had to intervene extensively to counter exchange rate pressures in spite of extensive restrictions on capital transactions.
Table 4 .
Controls on Capital TransactionsControls on:
Capital market securities
Money market instruments
out above and of the experience with controls on capital flows induced by interest rates, it could be said that capital controls would not have been fully effective even without large exchange rate fluctuations.
This study shows that, once such controls have been introduced, they inevitably become progressively tighter and more numerous, and eventually have to be extended to cover current transactions. Controls were set on the terms of payment in all three countries, although they do not appear to have restricted payments and transfers for current transactions
residents by non-residents) or outflows (credits provided by residents to nonresidents).
Direct investment and real estate transactionsControls may apply to inward and outward direct investment, liquidation of investment, or purchases and sales of real estate made locally by nonresidents and purchases of real estate made abroad by residents.
Provisions specific to commercial banks
Controls may be applied to nonresident deposits and bank borrowing abroad (inflows) and to foreign loans and deposits (outflows).
Personal capital movements