Chapter

NETHERLANDS

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2000
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Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: February 15, 1961.
Exchange Arrangement
CurrencyAs of January 1, 1999, the currency of the Netherlands is the euro. In cash transactions, however, the legal tender remains the Netherlands guilder until 2002, when euro banknotes and coins will be issued.
Exchange rate structureUnitary.
Classification
Exchange arrangement with no separate legal tenderThe Netherlands participates in a currency union (EMU) comprising 11 members of the EU: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. Internal conversion rates in respect to the national currencies of EMU participants were fixed to the euro on January 1, 1999, whereas the external exchange rate of the euro is market determined. The conversion rate between the euro and the Netherlands guilder was set at f. 2.20371 per €1. The ECB has the right to intervene to smooth out fluctuations in external exchange rates.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketForward exchange contracts are not limited as to delivery period, nor is an underlying trade transaction required.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payment arrangementsNo.
Administration of controlNo.
International security restrictions
In accordance with Executive Board Decision No. 144-(52/51)Yes.
In accordance with UN sanctionsIn compliance with the relevant UN Security Council resolutions and/or EU regulations, certain restrictions are imposed on financial transactions with Iraq, Libya, the Federal Republic of Yugoslavia (Serbia/Montenegro), and the UNITA movement in Angola. Effective April 6, 1999, restrictions on financial transactions with Libya were suspended.
Payment arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
Controls on exports and imports of banknotesNo.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency convertible into foreign currencyYes.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsYes.
Convertible into foreign currencyYes.
Blocked accountsIn compliance with relevant UN Security Council resolutions and/or EU regulations, funds belonging to Iraq, Libya, the Federal Republic of Yugoslavia (Serbia/Montenegro), and the UNITA movement in Angola are blocked. Effective April 6, 1999, restrictions on financial transactions with Libya were suspended.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsNo.
Import licenses and other nontariff measuresImports from Angola and Iraq are prohibited. Imports of most products covered by the CAP from non-EU countries are subject to import levies. Common EU regulations are applied to most agricultural and livestock products.
Negative listImport licenses are required for imports originating in Hong Kong SAR, Japan, and state trading countries (i.e., the People’s Republic of China, the Democratic People’s Republic of Korea, and Vietnam), as well as for the importation of goods of unknown origin. In addition, import licenses are required for a limited number of products, mainly those of the agricultural, steel, and textile sectors.
Licenses with quotasThese apply to imports of textiles originating in the Far East and in state trading countries.
Import taxes and/or tariffsYes.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirementsNo.
Export licenses
Without quotasExport licenses are required for only a few commodities, mostly of a strategic character, for some agricultural products, and for iron and steel scrap and related products.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital and money market instrumentsInward and outward capital transfers by residents and nonresidents are not restricted, but they are subject to reporting requirements based on the External Financial Relations Act.
Controls on derivatives and other instrumentsNo.
Controls on credit operationsNo.
Controls on direct investmentNo.
Controls on liquidation of direct investmentNo.
Controls on real estate transactionsNo.
Controls on personal capital movementsNo.
Provisions specific to commercial banks and other credit institutions
Open foreign exchange position limitsLimits are imposed on banks’ total position in foreign currency and precious metals. Banks are required to report to the Nederlandsche Bank their position in each foreign currency and precious metal (spot, forward, and option positions) at the end of each month.
Provisions specific to institutional investorsNo.
Other controls imposed by securities lawsNo.
Changes During 1999
Exchange arrangementJanuary 1. The currency of the Netherlands became the euro. The conversion rate between the euro and the Netherlands guilder was set irrevocably at f. 2.20371 per €1.
Arrangements for payments and receiptsApril 6. Restrictions on financial transactions with Libya were suspended.

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