There was also significant mobility of capital and full convertibility.

China moved to current account convertibility in 1996, but retained a substantial number of controls on capital movements, which have served as a shield against financial contagion. Are these still needed?

In fact, it was clear that the culprits were the International Monetary Fund and the US Treasury, which had encouraged a shift to capital account convertibility without understanding that the case for free capital flows was not symmetrical with the case for free trade.

Even more extraordinarily, when these new currencies emerged as the new claimants to reserve status, they had only recently become convertible for current account transactions, and capital flows were still restricted. Germany had moved to current account convertibility in 1958, but Japan only in 1964.

One of the principles was to promote the convertibility of current accounts and a gradual progression towards greater freedom for movement of capital.

The Temptation of China s Capital Account

The securities firm shall not provide customer s capital account and securities account to others.

And finally, does full convertibility of the capital account introduce too much potential instability in the system, which developing countries may not be able to handle, and should developing countries therefore concentrate on liberalizing trade and direct investment flows as the major sources of benefit from integrating with the world economy, while maintaining a more cautious approach to liberalizing capital flows in general?

Names in capital account and securities account of the same customer should be the same.

If capital in customer s capital account is insufficient, it cannot accept buying entrustment if securities in customer s securities account are insufficient, it cannot accept selling entrustment.

The Fund has a central role in furthering capital account liberalization.

B. UNITED NATIONS GENERAL FUND, WORKING CAPITAL FUND AND SPECIAL ACCOUNT

C. United Nations General Fund, Working Capital Fund and Special Account

General Fund, Working Capital Fund and Special Account Technical cooperation activities

Capital account liberalization and renminbi internationalization invite potentially volatile cross border capital flows, which could, for example, trigger rapid currency appreciation. Given this, China can be expected to continue to manage capital account transactions to some extent, using macroprudential measures and, when appropriate, direct capital controls.

Second, much will depend on how China navigates the transition to a more open capital account. History is littered with financial crises occurring in the wake of precipitous capital account liberalization.

Working capital shall be provided from the cash resources of the Fund account.

Regional and global integration of markets Speed and sequencing of capital account liberalization, including role of controls on short term capital flows

As to the four criteria of safety, liquidity, profitability and convertibility, they were interrelated and all four were taken into account in deciding on the investment recommendations made to the Secretary General.

C. United Nations General Fund, Working Capital Fund and Special Account . 12 17 5

(i) quot General Fund, Working Capital Fund and Special Account quot includes the United Nations General Fund (statement V), the United Nations Working Capital Fund (statement VI) and the United Nations Special Account (statement VII)

In January 2002, the Government announced the end of the currency convertibility regime.

He may negotiate with contributing Governments regarding convertibility or reconversion of voluntary contributions.

The requirement for exporters to surrender 75 per cent of foreign currency proceeds was lifted in December 2004, and in January 2005 Egypt accepted the IMF Article VIII obligation to maintain current account convertibility.

17. Contrary to the past, problems have emerged not because of current account imbalances but of sudden disruptive changes in the capital account.

35. With the opening up of the capital account, there has been a tendency for currencies to appreciate as a result of increased capital inflows.

Progress in institution building is also important for a well sequenced liberalisation of the capital account.

The preconditions for capital account liberalization should include sound public finances and a strong financial system.

Thus, as capital inflows gave rise to a current account deficit, they ironically became the country s weakness.

This dataset takes account of only the approved equity capital for projects in production and under implementation, not actual, and does not cover reinvested earnings and other capital.

But it is just as essential that developing countries maintain an appropriate degree of policy autonomy in managing capital flows and choosing whatever capital account regime they deem appropriate.

Developing countries have also been advised to adhere to the objective of an open capital account, and to resort to capital controls, if at all, only under exceptional circumstances.

30. Mr. Cordeiro (Brazil) inquired about the preconditions for orderly capital account liberalization and the time frame involved.

BEIJING In theory, the difference between capital inflows and outflows in developing countries should be positive they should be net capital importers, with the magnitude of the balance equivalent to the current account deficit. Since the 1997 1998 Asian financial crisis, however, many East Asian countries have been running current account surpluses and hence have become net capital exporters.

In 1989, the unamortized value of UNICEF capital assets was expended against the 1988 1989 budget, resulting in a fully depreciated UNICEF capital asset account as of 31 December 1989.

12. Invites the International Monetary Fund to ensure that, in exercising its role in promoting capital account liberalization, it does so in an orderly and flexible manner so as to enable member countries to tailor capital account liberalization to the circumstances of each individual country

It expected the Secretariat, when considering security and safety strengthening projects, to take account of the capital master plan.

The airport project and road development together will account for 82.6 per cent of total capital spending in 2004.

Given absorption constraints, capital efficiency has been falling steadily amid increasing deadweight. If environmental damage caused by breakneck investment growth were taken into account, China s capital efficiency would be even lower.

There was a significant increase in exports, which generated a trade surplus for the first time since convertibility.

To address in the relevant international fora the urgency of measures at the global level to monitor short term capital flows, particularly in respect of the sources and movement of speculative capital, and to protect the autonomy of developing countries in managing capital flows and choosing their capital account regime.

22. Approves the establishment of a working capital reserve of 45 million dollars under the capital master plan account, to be operated under the terms of financial regulations 3.5, 4.2 and 4.3

Most economists in China seem to support the PBOC s stance, citing the potential benefits of capital account liberalization. But Chinese policymakers should also recognize the significant risks inherent in relaxing capital controls.

Rich countries, by contrast, are able to export more capital intensive goods, and thus have a greater need for investment. So they may be importing more capital resulting in a greater current account deficit simply because they are producing more capital intensive goods.

They stressed that a sound regulatory framework had to be in place to complement the opening of a capital account.