12 Conditions for Capital Mobility in a Country

1. Free capital movement – No restrictions on inflows/outflows (FDI, portfolio).
2. Full currency convertibility – Domestic ↔ foreign currency at market rates.
3. No exchange controls – No surrender requirements, caps, or licensing.
4. Macroeconomic stability – Low inflation, sustainable fiscal/monetary policy, stable exchange rate.
5. Sound financial system – Well-capitalized banks, deep capital markets, effective regulation.
6. Open trade regime – Low tariffs, minimal NTBs, WTO compliance.
7. Investor-friendly tax policy – Competitive corporate rate, treaties, incentives, no double taxation.
8. Political & institutional stability – Rule of law, contract enforcement, predictable policy.
9. Modern infrastructure – Ports, airports, broadband, logistics, energy reliability.
10. Skilled human capital – Education, technical training, labor mobility.
11. Natural resource endowment – For extractive FDI (oil, minerals, agri-land).
12. Transparency & governance – Clear laws, anti-corruption, IMF SDDS/GDDS compliance.

IMF's Annual Report on Exchange Arrangements and Exchange Restrictions (AREAER) tracks de jure/de facto openness.