Investment policy

Capital flows and the OECD Code of Liberalisation of Capital Movements



IMF/OECD update to G20 - September 2015
Co-operation on approaches to macro-prudential and capital flow management measures

Report to G20 - April 2015
The OECD's approach to capital flow management measures used with a macro-prudential intent

Promoting orderly capital flows

Capital flows are an integral component of international finance. They allow for savings to be channelled from surplus countries to deficit countries, where returns to investment are typically higher. However, these flows can also pose important challenges to open economies. Excessive inflows can lead the economy to overheat and fuel credit and asset price bubbles. Sharp reversals in capital inflows are disruptive. This has triggered renewed interest in the use of capital controls.


The G20 is discussing ways to help countries make the most of capital flows. The OECD’s Code of Liberalisation of Capital Movements is an important contribution to this debate.


The Code of Liberalisation of Capital Movements was born with the OECD in 1961 at a time when many OECD countries were in the process of economic recovery and development and when the international movement of capital faced many barriers.


For 50 years, the Code has provided a balanced framework for countries progressively to remove barriers to the movement of capital, while providing flexibility to cope with situations of economic and financial instability.


Revised governance arrangements announced in July 2012 mean the Code is now open to adherence by all interested countries.


Read how the approach of the Code promotes orderly capital flows | 汉语

Read how revised governance arrangements mean non-OECD countries can join the Code



Freedom of investment roundtable

FDI statistics for OECD and G20 countries

FDI regulatory restrictiveness index

OECD and the G20

OECD Code of Liberalisation of Capital Movements (pdf) en Français (pdf)

OECD Code of Liberalisation of Current Invisible Operations (pdf) en Français (pdf)

International capital flows: Structural reforms and experience with the OECD Code of Liberalisation of Capital Movements, OECD report to the G20 Sub-Group on Capital Flow Management, June 2011

Getting the most out of international capital flows, OECD Economic Outlook, May 2011

OECD Codes of Liberalisation of Capital Movements and Current Invisible Operations: Users' Guide (pdf) en Français (pdf)

Capital controls and the OECD Codes of Liberalisation, 2010

OECD countries improve their investment commitments under the Codes of Liberalisation, 2009

OECD Guidelines for recipient country investment policies relating to national security, 2009

Forty Years' Experience with the OECD Code of Liberalisation of Capital Movements, 2002 

Foreign Direct Investment for Development – Maximising benefits – Minimising costs, 2002

Liberalising Capital Flows: Lessons from Asia, 1998

The Experience of the OECD with the Code of Liberalisation of Capital Movements, 1998


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