Capital & Money Markets - PowerPoint Presentation

Slide1

Capital & Money

Markets

and

Other

Capital

Movements

Caroline

Mehigan

–

Economist

, OECD

Outline

Securities

Deposit

Accounts

Operations

in

Foreign

Exchange

Other

Operations

Securities: Items

IV to

VII

Securities

:

IV: Capital Markets (shares and

bonds- original maturity > one

yr

)

List A

V: Operations on Money Markets

(

original maturity

<

one

yr

)

List

B

VI: Other Negotiable Instruments and Non—Securitised Claims

List

B

VII: Collective Investment Securities

List A

Freedom for transactions and transfers:

No discrimination towards foreign securities

Securities: Freedom

for which transactions and transfers?

Admission of foreign securities on domestic markets

Introduction & Issue

Private placement & public offer

Residents abroad

Buy & sell

On recognised markets as well as through private transactions

Non-residents in the countryBuy & sellOn recognised markets as well as through private transactions

Admission of domestic securities on foreign markets

Introduction & Issue

Private placement & public offer

Securities

Operations

abroad by securities firms on account of clients.

Investments abroad of financial institutions. For pension funds and insurance, only rules for share of foreign assets.

Currency rules:

In the country: subject to domestic legislation.

Outside the country: according to rules of foreign jurisdiction.

Securities

:

Liberalisation obligations are qualified:

Transactions and transfers may be required to be channelled through authorised resident agents.

Admission is subject to securities market regulations.

For operations (buy/sell) in the country:

Measures to protect investors are permitted – including regulation of promotional activities – but non-discriminatory.

Securities must be “legally marketable”.For operations abroad: regulation of promotional activities is permitted.

Reservations

in place

by

adherents

Item IV: Capital

Markets

Informative

to

look

at

the de facto adjustment in measures over time

Using IMF AREAER dataFor 45 countries 2000-2015 Quarterly frequency Analysed at

the granular level of the Codes

Cumulative

Measure

adjustment

:

Inflow

Cumulative

Measure

adjustment

:

Inflow

Cumulative

Measure

adjustment

:

Outflow

Cumulative

Measure

adjustment

:

Outflow

XI

Deposit

Accounts

Subject

to authorisation to

accept depositsOperation by non-residents of

accounts with resident institutions In both domestic & foreign

currency

Operation

by

residents

of

accounts

with

non-

resident

institutions

In

both

domestic

&

foreign

currency

Refers

to

the

capital

account

transaction

,

not

the

underlying

service

,

which

is

covered

by

the

CLCIO.

XI

Deposit

Accounts

XII

Operations in

Foreign

Exchange

Absolute

standard, non-

residents in the country and

residents abroad should be able to

buy, sell and exchange currencies. Subject to

authorised

agent

rules

Spot,

forward

and

other

FX

derivatives

Repatriation

requirements

are non-

conforming

Other

Operations

XIII Life

insurance

Transfers only, underlying

services are covered by CLCIOXIV Personal Capital Movements

Family loansGifts and endowments DowriesInheritances

&

Legacies

Settlement

of

debts

in

their

country

of

origin

by

immigrants

Emigrants

’

assets

Gaming

Savings

of

non-

resident

workers

Other

Operations

XV

Physical

Movement of Capital

Assets Non-residents free to move their assets

abroadFor residentes only applies to foreign assets

XVI

Disposal

of

non-residente-

owned

blocked

funds

Transfer

of

blocked

funds

Use

of

blocked

funds

in

the

country

concerned

Cession

of

blocked

funds

between

non-

residents

Q & A