ARHIVELE OLTENIEI - Universitatea din Craiova

The liberalization capital account and its implications 355As a result of this strategy, the deferential between interval interest rateand the external one reduced continuously down to a negative level inSeptember-November 2005 as a consequence of the sterilization of the excess ofliquidity on monetary market.4. ConclusionsThe liberalization of capital account represents an important step in theeconomical and financial reform of Romania, but we have to remember the risksthat the last stages of this process bring. The full liberalization of capital accountof capital account will lead to attraction of important capital fluxes by ourcountry.As the global experience demonstrates the liberalization of capitalaccount will hold as direct effect a more efficient allocation of capital, directingit to the most productive directions with a reduction of financial costs, adevelopment of Romania’s financial system a good development of theCorporalist Governess and of the business domain and also of the strengtheningof macro-economical discipline.In order to prevent some negative effects generated by the liberalizationof the capital fluxes, especially the risk of excessive growth took a series ofmeasures regarding the perfecting of prudential banking standards, thegeneralization of international accounting standards.Concerning the risks linked to portfolio investments witch can exposethe national economy to sudden entrance and exits of capital, they will beprevented through the growth of the exchange course flexibility and thecomfortable level touched by the official currency stocks possessed by RNB.The policies adopted by the Romanian National Bank, regarding theinterests and the flexibility of the exchange course are ment to discourage theentrance of speculative capital. The measures adopted by Romania regarding thereform of public administration, the efficiency of infra-structure, the reducing ofthe uncertainty degree of economical medium through the stability prices, therates of interest represent premises of the growth of direct foreign investments inRomania.BIBLIOGRAPHY1. Brune N., Garett G., Guisinger A., Sorens J., The political economy of capital accountliberalization, www.international.ucla.edu/cms/files/capacct.pdf2. Eichengreen, B.J., Capital Acount Liberalization: What do Cross Country Studies Tellus?, The World Bank Economic Review, 15, p. 341-365, 2001.3. Fischer, S., Capital-Account Liberalization and the Role of the IMF: Should the IMFPursue Capital-Account Convertibility?, in: Essays in International Finance, No. 207,Princeton: Princeton University, 1998.4. IMF, Country Report no. 04/2002.