Capital Controls

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Capital control
Capital control is the monetary policy device that a country's government (i.e. sovereign power) uses to regulate the flow of investment-oriented money into and out of a country or currency. The decade since the Asian Currency Crisis in 1997-1998 has rekindled debate over the wisdom of developing markets having capital controls. Originally, as the march of globalization began to really get underway with the formalization of the World Trade Organization and the Uruguay Round of General Agreement on Tariffs and Trade (GATT), it was thought and in fact urged by the International Monetary Fund and others, that developing countries needed to liberalize their capital controlled environments and embrace the free flow of capital coursing throughout the global economy.
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UNODC Money Laundering Terms DictionaryDownload this dictionary
Capital Controls
Government restrictions on the acquisition of foreign assets or foreign liabilities by domestic citizens, or the acquisition of domestic assets or domestic liabilities by foreigners.

Copyright © 2005 UNODC - United Nations Office on Drugs and Crime.

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