The Impact of Trade Payment Restrictions and Capital Controls on External Sector Balances - International Monetary Fund | IMF

The Impact of Trade Payment Restrictions and Capital Controls on External Sector Balances - International Monetary Fund | IMF

Source: International Monetary Fund | IMF

DW NOTE

The IMF has spent three decades documenting how capital controls distort current accounts and fragment payment systems. Countries that impose them — Turkey, Argentina, Nigeria — call it monetary sovereignty. The Fund calls it what precedes a balance-of-payments crisis. The paper arrives as Iran's closure of Hormuz enters month seven and oil markets operate under the largest involuntary trade restriction since 1973. Theory meets live experiment.

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