Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Chapter

NETHERLANDS

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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(Position as of April 30, 2007)

Status under IMF Articles of Agreement
Article VIIIDate of acceptance: February 15, 1961.
Exchange Measures
Restrictions and/or multiple currency practicesNo restrictions as reported in the latest staff report as of December 31, 2006.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)On April 26, 2007, the Kingdom of the Netherlands notified the IMF that in 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 president of Belarus (2006), the former governments of Iraq and the Federal Republic of Yugoslavia and certain individuals and/or entities associated with the governments of Côte d’Ivoire, Myanmar, and Zimbabwe, as well as Lebanese and Syrian officials involved in the assassination of former Lebanese Prime Minister Rafik Hariri (2006). 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, Sierra Leone, 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.
References to legal instruments and hyperlinksn.a.
Exchange Arrangement
CurrencyThe currency of the Netherlands is the euro.
Exchange rate structureUnitary.
Classification
Independently floatingNetherlands participates in a currency union with 12 other members of the EMU and has no separate legal tender. Effective January 1, 2007, the exchange arrangement of the EMU countries has been reclassified to the category independently floating from the category exchange arrangement with no separate legal tender. The new classification is based on the behavior of the common currency, whereas the previous classification was based on the lack of a separate legal tender. The new classification thus reflects only a definitional change, and is not based on a judgment that there has been a substantive change in the exchange regime or other policies of the currency union or its members.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketForward exchange contracts are not limited as to delivery period, nor is an underlying trade transaction required.
References to legal instruments and hyperlinksn.a.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payments arrangementsNo.
Administration of controlNo.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
Controls on exports and imports of banknotesIn accordance with EU Regulation No. 1889/2005, natural persons entering or leaving the EU and carrying cash of a value of €10,000 or more must declare that sum to the relevant authorities of the member state through which they are entering or leaving the Community.
On exportsYes.
On importsYes.
References to legal instruments and hyperlinksEU Regulation No. 1889/2005.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency held abroadYes.
Accounts in domestic currency convertible into foreign currencyYes.
References to legal instruments and hyperlinksn.a.
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 president of Belarus, the former governments of Iraq and the Federal Republic of Yugoslavia, and the governments of Myanmar, Côte d’Ivoire, and Zimbabwe, as well as Lebanese and Syrian officials involved in the assassination of former Lebanese Prime Minister Rafik Hariri are also blocked.
References to legal instruments and hyperlinksn.a.
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 China.
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.
References to legal instruments and hyperlinksn.a.
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.
References to legal instruments and hyperlinksn.a.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
References to legal instruments and hyperlinksn.a.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
References to legal instruments and hyperlinksn.a.
Capital Transactions
Controls on capital transactionsInward and outward capital transfers by residents and nonresidents are generally not restricted, but they are subject to reporting requirements based on the External Financial Relations Act.
Repatriation requirementsNo.
Controls on capital and money market instrumentsNo.
Controls on derivatives and other instrumentsNo.
Controls on credit operationsNo.
Controls on direct investment
Inward direct investmentControls apply to investment in enterprises operating an airline, unless otherwise implied by the provision of international agreements to which the Netherlands is a party, and ownership of Netherlands flag vessels, unless the investment is made by shipping companies incorporated under Netherlands law, established in the Netherlands, and having their actual place of management in the Netherlands.
Controls on liquidation of direct investmentNo.
Controls on real estate transactionsNo.
Controls on personal capital transactionsNo.
References to legal instruments and hyperlinksn.a.
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutionsNo.
Provisions specific to institutional investors
Insurance companiesn.a.
Pension fundsn.a.
Investment firms and collective investment fundsn.a.
References to legal instruments and hyperlinksn.a.
Changes during 2006
No significant changes occurred in the exchange and trade system.
Changes during 2007
Exchange measuresApril 26. The authorities notified the IMF that the Kingdom of Netherlands maintains certain exchange restrictions in accordance with EU regulations and the relevant UN Security Council resolutions solely for the preservation of national or international security.
Exchange arrangementJanuary 1. The exchange arrangement of the EMU countries was reclassified to the category independently floating from the category exchange arrangement with no separate legal tender. The new classification reflects only a definitional change.

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