ANNEX4 CO-OPERATION AND COORDINATION OF EXCHANGE CONTROL POLICIES PREAMBLE The High Contracting Parties: RECALLING the provisions of Chapter Five of the Protocol, which require State Parties to co-operate and coordinate their exchange control policies; RECOGNISING the fact that SADC economies are characterised by significant exchange control divergences in terms of currency convertibility and exchange controlliberalisation; DETERMINED to achieve co-operation and coordination of exchange control policies, HEREBY AGREE as follows: ARTICLE 1 DEFINITIONS 1. In this Annex, terms and expressions defined in Article 1 of the Protocol shall bear the same meaning unless the context otherwise requires. 2. In this Annex, unless the context otherwise requires: "capital and financial receipt or account transactions" "currency convertibility" means, all transactions that involve the payment of capital transfers and the acquisition or disposal of non-produced, non-financial assets, as well as all transactions associated with changes of ownership in the foreign financial assets and liabilities of the economy of that State Party and such changes include the creation and liquidation of claims on, or by, the rest of the world in relation to that State Party; means, the ability of residents of that State Party and non-residents to exchange the currency of that State Party for foreign currency and to utilise the foreign currency in transactions. A measure of currency convertibility of a State Party is the absence of restrictions on: 51