Capital flows continue to encounter frictions at national borders; international financial markets are not yet characterized by perfect capital mobility and structural homogeneity.(27) Still, it is clear that government policies formerly accommodating the possibility, or the necessity, of controls on short-tenn capital movements
have lately converged in the direction of liberalization.
International organizations, such as the Organization for Economic Co-Operation and Development (OECD) and the European Community (EC), have promoted, to varying degrees, the liberalization of capital movements
among their member countries.(1) The "Code of Liberalization of Capital Movements
," an agreement drawn in 1982 by the OECD, sets different degrees of capital liberalization among its member countries, depending on the nature of capital transactions (e.g., direct or portfolio investment).
In fact, it was already moribund, fundamentally destabilized by the freeing of capital movements
. Even though a single currency could have been the appropriate answer, the drawn-out transition imposed by the treaty created a depressing catch-22 situation: Violent currency crises will continue to arise as long as the EMS exists, but monetary union without the EMS won't be achieved.
For this reason, most governments regularly resorted to various types of controls on short-term capital movements
in the decades following World War II.
Should these "reforms" continue, and should special agreements between the three countries remove the few remaining barriers to trade and capital movements
, then we will have a de facto NAFTA in the absence of one de jure.
The dilemma for those who regulate securities markets and those who set accounting standards is how to adopt standards that facilitate cross-border capital movements
without lessening the quantity and quality of information available to investors and without putting domestic companies at a competitive disadvantage with foreign companies.
Royal Dutch Shell CEO Ben van Beurden commented: "Good operational delivery across all Shell businesses produced one of our strongest-ever quarters, with cash flow from operations of $14.7 billion, excluding working capital movements
. Our strong financial performance allowed us to cover the cash dividend, interest payments, share buybacks and to further pay down debt.
The adjustments include the exercise of pre-emption rights of the BBE power plant in Spain by an existing partner as well as the financial performance of the portfolio and working capital movements
since the effective date of 1 October 2012, the buyer explained.
"In current circumstances, the stability of financial markets and the banking system in Cyprus constitutes a matter of overriding public interest and public policy justifying the imposition of temporary restrictions on capital movements
," said the EU's executive body in a statement.
"The Commission will monitor closely with the Cypriot authorities, other member states, the European Central Bank and the European Banking Authority the implementation of the imposed restrictive measures on capital movements
," it said in a statement.
Governor, Prasarn Trairatvorakul, said, 'Yesterday's decision was not because of capital movements
but it was rather a cushion and buying insurance against the global economy going forward.'
But Gazprom Neft's purchase of minority stakes in NIS and Sibir Energy, as well as working capital movements
, drained free cash flow to near-zero in 1H11.