IMF: Trade payment restrictions strengthen current accounts, capital controls sway exchange rates Trade payment restrictions can strengthen countries’ current account positions, while capital controls influence exchange rate movements differently depending on whether they target capital inflows or outflows, according to a new IMF paper.
The findings are contained in a paper titled “The Impact of Trade Payment Restrictions and Capital Controls on External Sector Balances,” prepared by Adam Jakubik, Effie Karfaki, Tobias Krahnke, Wenjie Li, Anita Tuladhar and Chenyu Xu.
The paper examines how policy restrictions on international transactions affect current accounts and real exchange rates, an area the authors said has received relatively limited empirical attention compared with macroeconomic fundamentals, structural factors and conventional policy measures. https://nairametrics.com/2026/09/07/imf-trade-payment-restrictions-strengthen-current-accounts-capital-controls-sway-exchange-rates/
Nairametrics
IMF: Trade payment restrictions strengthen current accounts, capital controls sway exchange rates
Trade payment restrictions can strengthen countries’ current account positions, while capital controls influence exchange rate movements differently depending on whether they target capital inflows or outflows, according to a new IMF paper.
September 7, 2026 839
