IMF Endorses Capital Control Measures to Relieve Out of Control Interest Rates and Currency Fluctuations

“The International Monetary Fund endorsed nations’ use of capital control measures in certain circumstances, making official a shift in the works for almost three years that will guide the fund’s advice to member countries.

In a reversal of its historic support for unrestricted flows of money across borders, the Washington-based IMF said controls can be useful when countries have little room for economic policies such as lowering interest rates or when surging capital inflows threaten financial stability. Still, it said the measures should be targeted, temporary and not discriminate between residents and non-residents.”

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