"A survey of the critical factors affecting CAPITAL ACCOUNT LIBERALISATION."

Abstract

The increase in trade, the increasing internationalisation of production and the improvements in communications, coupled with legalisation of foreign currency instruments have led to a liberalisation of the capital account in a growing number of countries. In line with this trend towards greater reliance on the open market, many governments of developing countries too, have considered the possibility of fully opening their capital accounts. In South Africa the issue was raised again in October 1991 when the financial rand discount dropped to 5.5 percent. This paper will attempt to provide a background to capital account liberalisation in general, and South