Annual Report on Exchange Arrangements and Exchange Restrictions 2017 IN T E R N A TI O N A L
ANNUAL REPORT ON EXCHANGE ARRANGEMENTS AND EXCHANGE RESTRICTIONS 2017 Contents . Abbreviations. Overview. Table 1.Classification of Exchange Rate Arrangements. Ovcra.2 Developments in exchange Arrangements. Table 2.De Facto Classification of Exchange Rate Arrangements and Monetary Policy Frameworks,April 30,2017. .5 Table Exchange Rat Table 5.Mo ng K d E. Rchange Rate 0c12016-4Ap302017 Table 6.Foreign Exchange Market Structure.2014-17 13 Member CountriesObligations and Status under Ar ticles VIII and XIV s That Hav he Ob 40 Compilation Guide 45 eckgRaccCmaGT6 Country Table Matri.69 Intemational Monetary Fund Otober 2017 OInternational Monetary Fund.Not for Redistribution
ANNUAL REPORT ON EXCHANGE ARRANGEMENTS AND EXCHANGE RESTRICTIONS 2017 International Monetary Fund | October 2017 iii Contents Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iv Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Table 1. Classification of Exchange Rate Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Overall Developments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Developments in Exchange Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Table 2. De Facto Classification of Exchange Rate Arrangements and Monetary Policy Frameworks, April 30, 2017 . . . . . . . . 5 Table 3. Exchange Rate Arrangements, 2009–17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Table 4. Changes and Resulting Reclassifications of Exchange Rate Arrangements, May 1, 2016–April 30, 2017 . . . . . . . . . . . 9 Table 5. Monetary Policy Frameworks and Exchange Rate Anchors, 2009–17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Table 6. Foreign Exchange Market Structure, 2014–17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Member Countries’ Obligations and Status under Articles VIII and XIV. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Figure 1. IMF Members That Have Accepted the Obligations of Article VIII, Sections 2(a), 3, and 4, 1945–2016 . . . . . . . . 18 Table 7. Exchange Restrictions and Multiple Currency Practices, January 1–December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . 20 Table 8. Exchange Restrictions and/or Multiple Currency Practices by Country, as of December 31, 2016 . . . . . . . . . . . . . . . 22 Regulatory Framework for Foreign Exchange Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Table 9. Provisions Specific to the Financial Sector, January 1, 2016–August 31, 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Compilation Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Summary Features of Exchange Arrangements and Regulatory Frameworks for Current and Capital Transactions in Member Countries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Country Table Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 ©International Monetary Fund. Not for Redistribution
ANNUAL REPORT ON EXCHANGE ARRANGEMENTS AND EXCHANGE RESTRICTIONS 2017 Preface The annual report on exchange arr and exchange restrictions has been published by the ime since 1950.It drawsoninormation available to the IMFfrom umber of sources,incuding that provided in the course of official staff visits to member countries,and has been prepared in dlose consultation with national authorities. This proiect was ordinated in the Monera and Capital markets Der t by a staff team directed by Gaston Gelos and comprising Chikako Baba,Ricardo Cervantes,Salim M.Darbar,Aditya Gaiha, Amnamauo fa deparmcnt pov.and Yo ed cont espciiccountries.w assistance from staf f memb by Linda Griffin Kean.Hyoun o)Park.and Lucy Scott Morae of he nterational Monetary Fund October 2017 OInternational Monetary Fund.Not for Redistribution
ANNUAL REPORT ON EXCHANGE ARRANGEMENTS AND EXCHANGE RESTRICTIONS 2017 iv International Monetary Fund | October 2017 Preface The Annual Report on Exchange Arrangements and Exchange Restrictions has been published by the IMF since 1950. It draws on information available to the IMF from a number of sources, including that provided in the course of official staff visits to member countries, and has been prepared in close consultation with national authorities. This project was coordinated in the Monetary and Capital Markets Department by a staff team directed by Gaston Gelos and comprising Chikako Baba, Ricardo Cervantes, Salim M. Darbar, Aditya Gaiha, Annamaria Kokenyne, Jorge Lugo, Thorvardur Tjoervi Olafsson, Svetlana Popova, and Yi Xue. It draws on the specialized contribution of that department (for specific countries), with assistance from staff members of the IMF’s five area departments, together with staff of other departments. The report was edited and produced by Linda Griffin Kean, Hyoun (Josh) Park, and Lucy Scott Morales of the Communications Department. ©International Monetary Fund. Not for Redistribution
ANNUAL REPORT ON EXCHANGE ARRANGEMENTS AND EXCHANGE RESTRICTIONS 2017 Abbreviations ACU Asian Clearing Union (Bangladesh,Bhutan,India,Islamic Republic of Iran, Myanmar,Nepal,Pakistan,Sri Lanka) AD Authorized dealer AFTA ASEAN Free Trade Area (see ASEAN,below) AGOA African Growth and Opportunity Act (United States) AMU Asian monetary unit ASEAN Association of Southeast Asian Nations(Brunei Darussalam,Indonesia,Malaysia, Philippines,Singapore.Thailand) BCEAO Central Bank of West African States(Benin,Burkina Faso.Cote d'Ivoire.Guinea- Bissau,Mali,Niger,Senegal,Togo) BEAC Bank of Central African States (Camer on.Central African Republic.Chad. Republic of Congo,Equatorial Guinea,Gabon) CACM Central American Common market (Costa rica.el Salyador.Guatemala.Honduras Nicaragua) CAFTA Central American Free Trade Agr CAP Common policy (of the EU) CARICOM Caribbean Community and Common Market (Antigua and Barbuda,Barbados Mont nid S ts an The Bahamas isals member of CARICOM,but it does not participa ate in the Common Market CB Central bank CEFTA CEMAC Central African Economic and Monetary Community(members of the BEAC) CEPGL CET Common external tariff CFA Communaute financiere d'Afrique (administered by the BCEAO)and Cooperation financiere en Afrique centrale (administered by the BEAC) CIMA Code Chartered Institute of Management Accountants Code of Ethics for Professional Accountants CIS C01 nonwealth of Inde Ukraine,Uzbekistan) CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora CMA Common mone CMEA Council for Mutual economic Assi dissolved: olia.Poland.Romania U.S.S.R.Vietnam) Note:This list does no indlude acronyms of purely narional instittions mentioned in the counry chapters. OInternational Monetary Fund.Not for Redistribution
ANNUAL REPORT ON EXCHANGE ARRANGEMENTS AND EXCHANGE RESTRICTIONS 2017 International Monetary Fund | October 2017 v Abbreviations ACU Asian Clearing Union (Bangladesh, Bhutan, India, Islamic Republic of Iran, Myanmar, Nepal, Pakistan, Sri Lanka) AD Authorized dealer AFTA ASEAN Free Trade Area (see ASEAN, below) AGOA African Growth and Opportunity Act (United States) AMU Asian monetary unit ASEAN Association of Southeast Asian Nations (Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore, Thailand) BCEAO Central Bank of West African States (Benin, Burkina Faso, Côte d’Ivoire, GuineaBissau, Mali, Niger, Senegal, Togo) BEAC Bank of Central African States (Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea, Gabon) CACM Central American Common Market (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua) CAFTA Central American Free Trade Agreement CAP Common agricultural policy (of the EU) CARICOM Caribbean Community and Common Market (Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago); The Bahamas is also a member of CARICOM, but it does not participate in the Common Market CB Central bank CEFTA Central European Free Trade Area (Bulgaria, Hungary, Poland, Romania, Slovak Republic, Slovenia) CEMAC Central African Economic and Monetary Community (members of the BEAC) CEPGL Economic Community of the Great Lakes Countries (Burundi, Democratic Republic of the Congo, Rwanda) CET Common external tariff CFA Communauté financière d’Afrique (administered by the BCEAO) and Coopération financière en Afrique centrale (administered by the BEAC) CIMA Code Chartered Institute of Management Accountants Code of Ethics for Professional Accountants CIS Commonwealth of Independent States (Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Russian Federation, Tajikistan, Turkmenistan, Ukraine, Uzbekistan) CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora CMA Common Monetary Area (a single exchange control territory comprising Lesotho, Namibia, South Africa, and Swaziland) CMEA Council for Mutual Economic Assistance (dissolved; formerly Bulgaria, Cuba, Czechoslovakia, German Democratic Republic, Hungary, Mongolia, Poland, Romania, U.S.S.R., Vietnam) Note: This list does not include acronyms of purely national institutions mentioned in the country chapters. ©International Monetary Fund. Not for Redistribution
ANNUAL REPORT ON EXCHANGE ARRANGEMENTS AND EXCHANGE RESTRICTIONS 2017 COMESA Mauritiu EAC East African Community EBRL European Bank for Reconstruction and Development EC European Council (Council of the European Union) ECB European Central Bank ECCB e Grenadines ECCU Eastern Caribbean Currency Union ECOWAS Economic Community of West African States (Benin,Burkina Faso,Cape Verde Cote d'Ivoire,The Gambia,Ghana,Guinea,Guinea-Bissau,Liberia,Mali,Niger, Nigeria,Senegal,Sierra Leone,Togo) ECSC European Coal and Steel Community EEA European Economic Area European Financial Stability Mechanism EFTA European Free Trade Association (Iceland,Liechtenstein.Norway.Switzerland) EIB European Investment Bank EMU and M NetherndPor S Republic,SlovnSpain) ERM Exchange rate mechanism (of the European monetary system) E Sweden.Unite Kingdom) FATF Financial Action Task Force on Money Laundering (of the OECD) Foreign direct Foreign exchange certificate FSU former soviet Union G7 of Sever nce,Germany,Italy.Japan GAFTA Greater Arab Free Trade Agreement GSP Generalized System of Preferences IBRD International Bank for Reconstruction and Development (World Bank) IMF International monetary fund LAIA c) ia,Brazil,Chile,Colombia LC Letter of credi LIBID London interbank bid rate LIBOR London interbank offered rate International Monetary Fund October 2017 OInternational Monetary Fund.Not for Redistribution
ANNUAL REPORT ON EXCHANGE ARRANGEMENTS AND EXCHANGE RESTRICTIONS 2017 vi International Monetary Fund | October 2017 COMESA Common Market for Eastern and Southern Africa (Burundi, Comoros, Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Namibia, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, Zimbabwe) EAC East African Community EBRD European Bank for Reconstruction and Development EC European Council (Council of the European Union) ECB European Central Bank ECCB Eastern Caribbean Central Bank (Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines) ECCU Eastern Caribbean Currency Union ECOWAS Economic Community of West African States (Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo) ECSC European Coal and Steel Community EEA European Economic Area EFSF European Financial Stability Facility EFSM European Financial Stability Mechanism EFTA European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland) EIB European Investment Bank EMU European Economic and Monetary Union (Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, Netherlands, Portugal, Slovak Republic, Slovenia, Spain) EPZ Export processing zone ERM Exchange rate mechanism (of the European monetary system) EU European Union (formerly European Community); Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, United Kingdom) FATF Financial Action Task Force on Money Laundering (of the OECD) FDI Foreign direct investment FEC Foreign exchange certificate FSU Former Soviet Union G7 Group of Seven advanced economies (Canada, France, Germany, Italy, Japan, United Kingdom, United States) GAFTA Greater Arab Free Trade Agreement GCC Gulf Cooperation Council (Cooperation Council for the Arab States of the Gulf; Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates) GSP Generalized System of Preferences IBRD International Bank for Reconstruction and Development (World Bank) IMF International Monetary Fund LAIA Latin American Integration Association (Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, Venezuela) LC Letter of credit LIBID London interbank bid rate LIBOR London interbank offered rate ©International Monetary Fund. Not for Redistribution