In this paper we carry out statistical and econometric tests, using daily data from the interbank and Eurocurrency markets, that reveal a very high capital mobility in Japan, France, Germany and Spain, at least since the beginning of the 1990's. Furthermore, we show that Spain has achieved a high degree of integration with the external markets, and that the interest-rate differential between Spain and Germany has followed a convergent path along the whole sample period (January 1985 to March 1997). The interest-rate changes emanating from Germany have been the most relevant causality interactions, mainly since the moment when the process of capital liberalisation in Spain was completely accomplished.

Keywords: capital mobility, capital controls, financial integration, convergence of interest rates.
JEL classification: G15.