Annual Report on Exchange Arrangements and Exchange Restrictions 2005
Chapter

NETHERLANDS

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2005
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(Position as of January 31, 2005)

Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: February 15, 1961.
Exchange Arrangement
CurrencyThe currency of the Netherlands is the euro.
Exchange rate structureUnitary.
Classification
Exchange arrangement with no separate legal tenderThe Netherlands participates in the EMU with 11 other members of the EU: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Portugal, and Spain. The ECB may intervene to smooth out fluctuations in the euro exchange rate.
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.
Payments arrangementsNo.
Administration of controlNo.
International security restrictionsIn accordance with EU regulations and the relevant UN Security Council resolutions, certain restrictions are maintained on the making of payments and transfers for international transactions with respect to certain individuals and entities associated with the former governments of Iraq and the Federal Republic of Yugoslavia and certain individuals and/or entities associated with the governments of the Côte d’Ivoire, Myanmar, and Zimbabwe. In accordance with EU regulations, financing of and financial assistance related to military activities in the Democratic Republic of the Congo, Côte d’Ivoire, Liberia, Myanmar, Somalia, Sudan, and Zimbabwe are prohibited. Restrictions also apply on transfers with respect to Osama Bin Laden, Al-Qaida, the Taliban, and individuals and organizations associated with terrorism.
In accordance with IMF Executive Board Decision No. 144-(52/51)Yes.
In accordance with UN sanctionsYes.
Payments 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 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, accounts belonging to specific persons and/or entities related to Osama Bin Laden, Al-Qaida, the Taliban, and individuals and organizations associated with terrorism are blocked. Accounts belonging to specific persons or entities associated with the former governments of Iraq and the Federal Republic of Yugoslavia, and the governments of Myanmar, Côte d’Ivoire, and Zimbabwe are also blocked.
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 listImport licenses are required for a limited number of textile and steel products, mainly from the People’s Republic of China.
Licenses with quotasEffective January 1, 2005, quotas on textile imports from WTO members no longer apply, in accordance with the expiration of the WTO agreement on textiles and clothing.
Other nontariff measuresImports of most products covered by the CAP from non-EU countries are subject to common EU regulations.
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 nature.
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 transactionsInward 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 capital and money market instrumentsNo.
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 transactionsNo.
Provisions specific to commercial banks and other credit institutions
Open foreign exchange position limitsLimits are imposed on banks’ total positions in foreign currency and precious metals. Banks are required to report to the Nederlandsche Bank their positions in each foreign currency and precious metal (spot, forward, and option positions) at the end of each month.
On resident assets and liabilitiesIntegrated reports of nonresident assets and liabilities are required.
On nonresident assets and liabilitiesIntegrated reports of nonresident assets and liabilities are required.
Provisions specific to institutional investorsNo.
Other controls imposed by securities lawsNo.
Changes During 2004
No significant changes occurred in the exchange and trade system.
Changes During 2005
Imports and import paymentsJanuary 1. Quotas on textiles imports from WTO members were eliminated in accordance with the expiration of the WTO agreement on textiles and clothing.

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