Imf Not To Force Full Convertibility Of Rupee

The International Monetary Fund (IMF) will not force countries into accepting full convertibility on the capital account of balance of payments, says Flemming Larsen, deputy director, research department of the Fund.

Speaking in the context of the interim committees decision to include capital account convertibility in the annual meetings of the IMF-World Bank in Hong Kong in September, Larsen said, We want to ensure that countries do not take undue risk in undertaking capital account convertibility.

The interim committee which met in Washington in April had agreed that the Funds articles should be amended to make the promotion of capital account liberalisation a specific purpose of the Fund.The committee also exercised caution and prescribed that the scope of such jurisdiction would need to be carefully defined and sufficient flexibility be allowed through transitional provisions and approval policies.