The Convertibility Of Capital Account: Sequence And Requirements

The economists inside and outside our country disputed ardently over whether the convertibility of Capital Account should abide by a certain sequence. In the analysis of these issues, the author thinks the viewpoint that the convertibility of Capital Account should conform to the internal sequence is correct. That is, if the requirements for the convertibility of Capital Account are not met, the items in Capital Account should open progressively. In order to verify the conclusion and make clear that what requirements are needed, what internal sequence should be abided by, the author analyzed Russia and Japan's history of currency liberalization. Then, some conclusions are drawn up: the mentioned viewpoint is correct, the Convertibility of Capital Account should meet eight requirements and the internal sequence that should be abided by, which have a very important significance in theory. Meanwhile, our country had become a member of the WTO in December 11, 2001. This will facilitate the convertibility of Capital Account. On the basis of the analysis of the conditions of the convertibility of Capital Account in this country, some suggestions have been made.