Chapter

SPAIN

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2004
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(Position as of December 31, 2003)
Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: July 15, 1986.
Exchange Arrangement
CurrencyThe currency of Spain is the euro.
Exchange rate structureUnitary.
Classification
Exchange arrangement with no separate legal tenderSpain participates in the EMU with 11 other members of the EU: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, and Portugal. The ECB reserves the right to intervene to smooth out fluctuations in the euro exchange rate.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketOptions and futures in euros are traded in major financial markets.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payments arrangementsNo.
Administration of controlPayments and receipts between residents and nonresidents may be made freely. However, under special circumstances, the Ministry of Economy (MOE) may impose restrictions to protect the national interest or to comply with the rules of international organizations.
International security restrictions
In accordance with UN sanctionsIn accordance with EU regulations and the relevant UN Security Council resolutions, certain restrictions are maintained on the making of payments and transfers for current international transactions with respect to the former government of Iraq, Myanmar, certain individuals associated with the previous government of the former Republic of Yugoslavia, and Zimbabwe. In accordance with EU Regulation No. 147/2003, effective January 27, 2003, financing of and financial assistance related to military activities in Somalia are prohibited. Restrictions also apply on transfers with respect to the Taliban and individuals and organizations associated with terrorism.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
Controls on exports and imports of banknotesImports and exports of banknotes in excess of the equivalent of €6,010 must be declared for anti–money laundering purposes. Imports and exports of banknotes by banks and other authorized financial institutions require prior notification to the Bank of Spain (BOS).
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Held abroadCollections and payments between residents and nonresidents through credits or debits to these accounts may be made freely. However, for statistical and administrative purposes, account holders are required to report the opening and closing of such accounts and to provide information pertaining to credit and debit activities in the accounts above certain amounts.
Accounts in domestic currency held abroadThe requirements on foreign exchange accounts held abroad also apply to euro accounts abroad.
Accounts in domestic currency convertible into foreign currencyYes.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsYes.
Convertible into foreign currencyYes.
Blocked accountsNo.
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 measures
Negative listSpain applies the EU common import regime. In addition, imports of certain defense materials require prior authorization from the General Secretary of Foreign Trade.
Open general licensesYes.
Licenses with quotasIn accordance with EU regulations, Spain requires licenses with quotas for certain imports, such as steel and textile products, depending on the country of origin.
Import taxes and/or tariffsSpain applies the EU common custom tariffs.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirementsNo.
Export licenses
Without quotasExports of certain defense materials require prior authorization from the General Secretary of Foreign Trade.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersFor statistical and administrative purposes, all payments, receipts, and transfers between residents and nonresidents exceeding €12,500 must be declared to the MOE and the BOS.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital transactionsResidents are free to carry out capital transactions. However, payments and receipts exceeding €12,500 must be reported to the MOE and the BOS.
Controls on capital and money market instruments
On capital market securitiesResidents may purchase securities issued by nonresidents or by residents in a foreign market.
Controls on derivatives and other instrumentsNo.
Controls on credit operations
Commercial creditsFor statistical and administrative purposes, residents other than banks are required to report to the BOS commercial credits to or from nonresidents exceeding €600,000 and with a maturity of more than one year.
Financial creditsFor statistical and administrative purposes, residents other than banks are required to report to the BOS financial credits to and from nonresidents exceeding €3 million.
Controls on direct investmentNo.
Controls on liquidation of direct investmentNo.
Controls on real estate transactionsNo.
Controls on personal capital transactionsNo.
LoansFor statistical and administrative purposes, residents other than banks are required to report to the BOS loans to and from nonresidents exceeding €3 million.
Provisions specific to commercial banks and other credit institutions
Borrowing abroadFinancial credits obtained must be reported to the BOS.
Lending to nonresidents (financial or commercial credits)Residents must report loans granted to nonresidents to the BOS.
Lending locally in foreign exchangeThis type of operation is subject to the rules and regulations governing interest rates and commissions, rules of procedure, customer information, and publications applicable to credit institutions.
Differential treatment of deposit accounts in foreign exchange
Reserve requirementsYes.
Investment regulations
In banks by nonresidentsEU investors, even though they may be authorized credit institutions in other EU countries, must give prior administrative notice. Non-EU institutions may be denied authorization if corporate credit institutions do not enjoy reciprocity in the country of origin of the investor.
Provisions specific to institutional investors
Currency-matching regulations on assets/liabilities compositionRegulations differ according to the type of institutional investor.
Other controls imposed by securities lawsIn line with EU securities directives, foreign listing is subject only to the filing of a prospectus on the same conditions as domestic issuers.
Changes During 2003
Arrangements for payments and receiptsJanuary 27. Financing of and financial assistance related to military activities in Somalia were prohibited.

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