Progress Report on Capital Account Liberalisation
This report outlines the progress and initiatives of the Working Committee on Capital Account Liberalisation (WC-CAL) as of October 26, 2021. It covers strategic action plans, key achievements, priorities, and the revised CAL Heatmap. The report also details the end goals, priorities, and actions requested from the Senior Level Committee.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
22nd Senior Level Committee 26 October 2021 Progress Report of the Working Committee on Capital Account Liberalisation (WC-CAL)
Executive Summary Strategic Action Plan (SAP): End Goals 1 Priorities for 2021 2 CAL Heat Map 3 AEC 2025 Individual CAL Plan 4 SAP: Key Achievements 5 KPIs, RMTs, and Capacity-Building Initiatives 6 Actions Requested from SLC 7
Strategic Action Plan (SAP): End Goals for CAL SAP Others (if any) Substantial liberalisation in AMS capital account Priorities 1 AEC 2026 Cap Building KPI RMT Strengthened policy dialogue and information exchange mechanism on capital flows statistics and capital flow measures among AMS 2
Priorities SWG to report its findings on KPIs and possible benchmarks/standards to the 42nd WC-CAL in 2H2021. 1 SAP Others (if any) Priorities Enhance the CAL Heatmap to incorporate relevant CAL efforts toward sustainable finance and/or green economy, including green bonds. 2 AEC 2026 Cap Building KPI RMT Develop a Policy Note, potentially in consultation with international partners, on ASEAN s recent experiences in Capital Account Safeguard Measures. 3 ASEC to upload CAL reports/documents for public viewing and populate the CAL database (for WC-CAL members only). 4
Revised CAL Heatmap Revised CAL Heatmap June 2021 June 2021 June 2021 Country BN 100 100 98 100 98 100 100 100 ID 90 100 96 100 100 96 98 97 KH 100 100 97 92 100 95 100 100 LA 100 94 95 79 89 78 92 80 MA* 90 100 100 88 99 81 97 89 MM 96 94 93 79 61 46 75 35 PH 100 94 98 96 97 93 93 91 SG 100 100 100 100 100 100 100 98 TH 90 94 98 94 99 86 97 86 VN 100 100 90 63 96 68 97 83 Inflows Outflows Inflows Outflows Inflows Outflows Inflows Outflows Current Account Direct Invesments Portfolio Flows Other Flows * Updated since previous meeting Increase from 85 to 90 since last submission
Consolidated CAL Plan (2019 Consolidated CAL Plan (2019- -2025) 2025) No existing restriction, to maintain regime With identified restriction/s, to be liberalised With identified restriction/s, to be maintained June 2021 Plans of Action Account BN ID KH LA MA* MM PH SG TH VN Current Account - Inflows Current Account - Outflows DI - Inflows DI - Outflows Portfolio Inv - Inflows Portfolio Inv - Outflows Other Inflows Other Outflows SG no submission, fully liberalized MM copied from previous meeting, received no updates
Strategic Action Plan (SAP): Key Achievements Updated the CAL Heatmaps as of June 2021; Updated Individual CAL Plans as of June 2021 Substantial liberalisation in AMS capital account 1 SAP Others (if any) Priorities AEC 2026 Cap Building KPI Conducted semiannual Policy Dialogue Process on Safeguard Mechanisms for CAL; Continued monitoring of KPIs and RMTs for CAL; Finalised a Policy Note on AMS recent experiences with Capital Flow Measures, to be shared with the IMF; and RMT Strengthened policy dialogue and information exchange mechanism on capital flows statistics and capital flow measures among AMS 2 7
Key Performance Indicators (KPIs) Status Key Performance Indicator SAP SWG completed survey on adequacy of current KPIs and possible additional KPIs/indicators Financial Integration i. Share of intra-ASEAN portfolio investment to total portfolio investment in ASEAN - 10.86% (2019) - 12.95% (June 2020) Others (if any) Priorities AEC 2026 Cap Building Proposed 4 principles to be used holistically to evaluate additional KPIs KPI RMT ii. Share of Intra-ASEAN FDI to Total FDI in ASEAN - 12.14% (2019) - 16.96% (2020) Shortlisted 10 potential KPIs for further study Key highlights: Completion of data for monitoring financial integration KPIs Suggestions to monitor financial stability KPIs Financial Stability i. Reserves to Short Term External Debt ii. External Debt to GDP
Risk RiskMonitoring MonitoringTemplate Template Heat HeatMap Map Likelihood Geopoliticaltension COVID-19 pandemic High ClimateChange Cyber risk* Increased public and private debts in EMDEs* Digitalization risk incl. reliance to Bigtech and 3rd party service providers, crypto-asset & GSC* Cliffeffects from unwindingofsupport Solvencyrisk Medium Financial disintermediation MoneyLaundering/ Terrorist Financing Risk Low Low Medium High Impact * Updated since previous meeting
Capacity-Building A. Courses in BCLMV countries: In-house training in requesting CLMV countries - Capital Flow and Crisis Management, 10 August 2018, Lao PDR - Capital Flow and Crisis Management, 5-6 Nov 2018, Cambodia - Capital Account Liberalization Supervision and Monitoring Framework, 10-11 June 2019, Lao PDR - Financial Sector Development and Safety Nets, 26-27 August 2019, Cambodia SAP Others (if any) Priorities AEC 2026 Cap Building KPI B. AFIF customized courses: SEACEN courses customized for BCLMV - Macroeconomic-Financial 20-23 November 2018, Cambodia - Capital Account Liberalization and Foreign Exchange Management, 28-30 January 2019, Myanmar - Capital Flow Monitoring Mechanism 19-21 November 2019, Cambodia RMT Linkages and Diagnostics, Key highlights: Updates on conducted courses under SCCB Updates on CAL Experts WC-CAL Coordination with ADB C. Bilateral learning programs: Intra-ASEAN bilateral study visits and learning programs - Workshop on Central Bank Policy Mix: Issues, Challenges, and Policies , 9-13 April 2018, SBV to Indonesia - Study Visit on PSS and Foreign Exchange Management, 10-13 September 2018, CBM to MAS - Study Visit on Exchange Rate Management, 15-16 October 2018, CBM/SBV to BSP
Actions Requested from the SLC Actions Requested from the SLC For Notation Status of the SAP for CAL Revised CAL Heat Map as of June 2021 Individual CAL Plan (2018-2025) as of June 2021 Key Performance Indicators for CAL Shortlist of potential additional WC-CAL KPIs Risk Monitoring Template for CAL Capacity-Building Initiatives
