Article VI – Capital Transfers

E1011961

Article VI – Capital Transfers is a provision of the IMF’s Articles of Agreement that regulates members’ rights and limitations regarding the movement of capital across borders, particularly to prevent destabilizing capital flows.

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All labels observed (1)

Label Occurrences
Article VI – Capital Transfers canonical 1

Statements (35)

Predicate Object
instanceOf provision of the IMF Articles of Agreement
addresses restrictions on payments and transfers for capital transactions
adoptedBy United Nations Monetary and Financial Conference at Bretton Woods NERFINISHED
aimsTo prevent destabilizing capital flows
protect members’ balance of payments stability
allows IMF to request members to exercise controls to prevent use of IMF resources for capital flight
alsoKnownAs Article VI of the IMF Articles of Agreement NERFINISHED
appliesTo all IMF member countries
basedOn concern about destabilizing short‑term capital movements
citedIn IMF legal opinions on capital account regulation
academic literature on capital controls and the IMF
clarifies that members are not obliged to liberalize capital account transactions
distinguishesBetween current account transactions and capital account transactions
embeddedIn original Bretton Woods international monetary framework
frameworkFor member states’ policies on cross‑border capital movements
grantsRightTo IMF members to exercise controls on capital transfers
IMF members to regulate capital movements
hasLegalStatus binding treaty obligation for IMF members
influences IMF conditionality related to capital account measures
inForceSince 1945
legalBasisFor members’ use of capital controls under IMF rules
limits IMF authority over capital account transactions compared to current account transactions
objective avoid competitive exchange depreciation linked to capital flows
maintain orderly exchange arrangements
partOf Articles of Agreement of the International Monetary Fund NERFINISHED
permits members to regulate capital movements for balance of payments reasons
members to use capital controls to prevent large or volatile capital outflows
prohibits members from using IMF general resources to meet large or sustained capital outflows
use of IMF resources to finance capital flight
regulates capital transfers by IMF member countries
members’ rights regarding movement of capital across borders
relatedTo Article VIII of the IMF Articles of Agreement NERFINISHED
IMF policies on capital account liberalization
scope capital transfers and related payments
subjectOf IMF jurisdiction over capital account transactions

Referenced by (1)

Full triples — surface form annotated when it differs from this entity's canonical label.

Articles of Agreement of the International Monetary Fund hasPart Article VI – Capital Transfers