Annual Report on Exchange Arrangements and Exchange Restrictions 2005
Chapter

GERMANY

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2005
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(Position as of December 31, 2004)

Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: February 15, 1961.
Exchange Arrangement
CurrencyThe currency of Germany is the euro.
Exchange rate structureUnitary.
Classification
Exchange arrangement with no separate legal tenderGermany participates in a currency union (EMU) with 11 other members of the EU: Austria, Belgium, Finland, France, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. The ECB may intervene to smooth out fluctuations in the euro exchange rate.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketResidents and nonresidents may freely negotiate forward exchange contracts for both commercial and financial transactions in all leading convertible currencies in the domestic exchange market and in international foreign exchange markets. Germany has no officially fixed rates in the forward exchange market. All transactions are negotiated at free market rates.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payments arrangementsNo.
Administration of controlAll banks in Germany are permitted to carry out foreign exchange transactions.
International security restrictionsIn accordance with EU regulations and the relevant UN Security Council resolutions, certain restrictions are maintained with respect to individuals and entities associated with the former government of Iraq, certain individuals associated with the former government of Liberia (effective April 30, 2004), certain capital transactions of certain state-owned enterprises in Myanmar (effective October 26, 2004), certain individuals associated with the previous government of the former Federal Republic of Yugoslavia, certain individuals indicted by the International Criminal Tribunal for the former Federal Republic of Yugoslavia (effective October 15, 2004), and Zimbabwe. Restrictions also apply on transfers with respect to Osama Bin Laden, the Taliban, and other individuals and organizations associated with terrorism. Financing and financial assistance related to military activities in the Democratic Republic of the Congo, Liberia (effective February 13, 2004), Myanmar, Somalia, Sudan (effective January 29, 2004), and Zimbabwe are prohibited.
In accordance with IMF Executive Board Decision No. 144-(52/51)On October 20, 2004, Germany notified the IMF that restrictions are continued on certain international payments and transfers based on the relevant EU and UN sanctions.
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 accountsYes.
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 listYes.
Licenses with quotasThe importation of certain textile goods and steel products are subject to the EU’s annual global quota.
Import taxes and/or tariffsNo.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirements
OtherYes.
Export licenses
Without quotasCertain exports (mostly military and dual-use goods) are subject to individual, global, or general licensing. The customs authorities exercise control over export declarations.
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 transactionsEffective October 26, 2004, controls are imposed on the following capital transactions with certain state-owned enterprises in Myanmar: (1) the granting of any financial loan or credit to these enterprises; (2) the acquisition of bonds, certificates of deposit, warrants, or debentures issued by these enterprises; and (3) the acquisition or extension of a participation in these enterprises including the acquisition in full of such enterprises or the acquisition of shares and securities of a participating nature.
Controls on capital and money market instruments
On capital market securities
Shares or other securities of a participating nature
Purchase locally by nonresidentsYes.
Sale or issue locally by nonresidentsYes.
Bonds or other debt securitiesThe regulations governing shares or other securities of a participating nature apply.
Controls on derivatives and other instrumentsNo.
Controls on credit operations
Financial credits
By residents to nonresidentsYes.
Controls on direct investmentThe regulations governing shares or other securities of a participating nature apply.
Outward direct investmentYes.
Controls on liquidation of direct investmentNo.
Controls on real estate transactionsNo.
Controls on personal capital transactionsNo.
Provisions specific to commercial banks and other credit institutionsNo.
Provisions specific to institutional investors
Limits (max.) on securities issued by nonresidentsThere are certain provisions for prudential regulation of portfolios of life insurance and pension funds.
Limits (max.) on investment portfolio held abroadThe regulations governing securities apply. There are certain provisions for prudential regulation of portfolios of life insurance and pension funds.
Limits (min.) on investment portfolio held locallyThere are certain provisions for prudential regulation of portfolios of life insurance and pension funds.
Currency-matching regulations on assets/liabilities compositionCurrency-matching regulations for life insurance, pension funds, and old-age provision investment funds exist.
Other controls imposed by securities lawsNo.
Changes During 2004
Arrangements for payments and receiptsJanuary 29. Financing or providing financial assistance related to military activities in Sudan was prohibited.
February 13. Financing or providing financial assistance related to military activities in Liberia was prohibited.
April 30. Restrictions were imposed on transactions with respect to certain individuals associated with the former government of Liberia.
October 15. Restrictions were imposed on transactions with respect to certain individuals indicted by the International Criminal Tribunal for the former Federal Republic of Yugoslavia.
October 20. Germany notified the IMF that restrictions were continued on certain international payments and transfers based on the relevant EU and UN sanctions.
October 26. Restrictions were imposed on certain capital transactions with certain state-owned enterprises in Myanmar.
Capital transactionsOctober 26. Restrictions were imposed on certain capital transactions with certain state-owned enterprises in Myanmar.

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