Comment: Relaxing capital constraints

Indian policymakers surprised analysts and market participants alike this week by announcing their intention to ease capital restrictions and make the rupee fully convertible. The Indian experience with capital and exchange rate liberalisation bears some interesting lessons for other emerging market economies. China in particular will pay close attention.

COMMENT BY CENTRALBANKNEWS

Almost a decade ago plans similar to those outlined this week were being discussed. However, with the memory of the

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