IMF’s Proposed Guidelines on Capital Controls Divide Board
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An International Monetary Fund staff proposal to endorse capital controls in limited circumstances aroused opposition from Brazil and other nations seeking greater freedom to stem inflows of money from overseas.
“We strongly oppose any such guidelines or ‘codes of conduct’ that establish, standardize, prioritize or restrict the range of policy responses of the member countries that are facing large surges in volatile capital inflows,” Paulo Nogueira Batista, Brazil’s executive director at the IMF who also represents eight other countries, said in an e-mail.