Among the main developments:
- The overall current account surplus of oil exporting countries was largely eliminated in 1982 and other imbalances narrowed.
- In the second half of the year some countries, particularly in Latin America, encountered severe difficulties in servicing their external debts. Banks became more cautious in their lending and spreads widened.
- This caution affected some inter-bank lending and in the fourth quarter the London eurocurrency market contracted. Announced international bank credits also fell sharply.
- With interest rates falling, the international bond markets remained buoyant-but only developed countries had access.
- Sterling fell sharply from mid-November until more stable conditions returned in February. The dollar was also weak in the early part of the period, but recovered towards the end of January.