Foreign Exchange Liberalization: Perceptions, Realities and Way Forward

The article focuses on understanding of the economics of the exchange control liberalisation in macroeconomic perspectives and, therefore, the article does not attempt to interpret or explore the legal background relating to exchange control and liberalization and details of liberalization measures and their impact. The exchange control is a part of the broad regulatory policy package to intervene in or guide economic activities and markets in terms of the relevant legal provisions that empower the authorities to apply such interventions in the public interest. Accordingly, the exchange control and its liberalisation involve a considerable volume of legal aspects and procedures. However, the exchange control as well as its liberalization should be applied and evaluated carefully with a good understanding of the underlying economics because their purpose is to promote the economic welfare of the general public. [Central Bank Public Seminar]