Chapter

“Article VIII Countries”

Author(s):
International Monetary Fund. External Relations Dept.
Published Date:
September 1959
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Canada

Exchange Rate System

The exchange value of the Canadian Dollar is allowed to fluctuate. The noon market rate on December 31, 1958 was Can$0.9641 per US$1. Canada has no exchange restrictions on foreign payments. On March 26, 1952, Canada notified the Fund that it was prepared to accept the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement.

Prescription of Currency

There are no obligations imposed on importers, exporters, or others prescribing the method or currency for payments to or from persons resident abroad.

Imports and Import Payments

Payments and transfers abroad may be made freely. Import licenses are required only for a few agricultural items.

Exports and Export Proceeds

The surrender of the proceeds of exports is not required, and exchange receipts are freely disposable. For supply reasons, a few commodities are under export control to all destinations. For security reasons, a list of restricted commodities is under export control to all destinations except the United States. All exports to the U.S.S.R. and some other destinations are subject to control, but certain nonstrategic goods, when of Canadian origin, may be exported to these destinations under general permit.

Payments for and Proceeds from Invisibles

There are no requirements imposed on exchange receipts from, or exchange payments for, invisibles.

Capital

No exchange control obligations are imposed on capital receipts or payments by either residents or nonresidents.

Changes during 1958

No significant changes took place during 1958.

Cuba1

Exchange Rate System

The par value is Cuban Peso 1.00 = US$1. The official rates are 1.00 peso buying (and selling for certain capital transfers), and 1.02 pesos selling (including a 2 per cent tax on the export of funds, securities, and merchandise), per US$1. There are no restrictions on payments for imports, but the granting of exchange for personal remittances and capital transfers may be subject to indefinite delay. Special requirements are imposed on noncommercial payments and on all payments to Spain, Mainland China, and North Korea. On December 18, 1953, Cuba notified the Fund that it assumed fully the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement.

Administration of Control

The Cuban Monetary Stabilization Fund, the administration of which is entrusted to a committee consisting of the Minister of Finance, the President of the National Bank of Cuba, and the Director of the Stabilization Fund, operates exchange control directly or through the National Bank and other authorized banks. It also grants import licenses where these are required.

Prescription of Currency

Personal remittances exceeding US$1,000 may be made only by bank transfer. Other requirements with respect to the method of payment are as follows: (1) Under the terms of a payments agreement with Spain, settlements between Spanish and Cuban residents are made through clearing accounts expressed in Cuban pesos. (2) Payments to residents of Mainland China and North Korea must be made by bank transfer through a bank located in the United States.

Nonresident Accounts

There are no restrictions with respect to the accounts in local currency of nonresidents. Such accounts may be opened and operated freely, with the exception of accounts of residents of Spain. Withdrawals from nonresident accounts are subject to a 2 per cent exchange tax if the funds are sent or used abroad or are made payable in U.S. dollars or any other foreign currency.

Imports and Import Payments

Imports of specified less essential goods (some 195 items) require import licenses and may only be imported by opening a commercial letter of credit within 30 days of the issue of the import license. A few imports are subject to licensing for registration and statistical purposes. Some 250 items imported from countries with which Cuba is renegotiating customs duties are subject to supervisory control and, if found to exceed certain levels, to quantitative restriction.

Exchange to pay for imports is provided by the authorized banks, subject to the submission of supporting evidence. Imports from Spain (with which Cuba has a payments agreement) can be cleared only upon the presentation of an authorization from the Monetary Stabilization Fund. Special requirements are imposed on payments to Mainland China and North Korea. There is an exchange tax of 2 per cent on exchange payments and transfers on account of imports.

Payments for Invisibles

A 2 per cent exchange tax is charged on all payments on account of invisibles. Payments of US$250 or less are permitted freely and the banks may provide each person with US$500 in travelers checks. All personal remittances abroad exceeding US$1,000 may be made only by bank transfer. The authorized banks may sell exchange to cover the expenses of Cuban students abroad up to US$2,000 for an academic year or US$1,000 for a semester, subject to the presentation of satisfactory proof that the student is registered with the scholastic institution named. The provision of exchange for any other purpose requires the prior approval of the Monetary Stabilization Fund. Obligations concerning the method of payment apply to certain payments (see section on Prescription of Currency, above). Insurance of imports for account of Cuban residents must be obtained in Cuba. A limit of US$50 is placed on foreign or domestic currency notes that a traveler may take out of the country. Foreign travelers are exempt from the 2 per cent tax on personal funds they carry when leaving the country.

Exports and Export Proceeds

In general, exports do not require licenses. The proceeds of exports not credited to a bank account in Cuba within a certain period after the date of shipment are subject to the 2 per cent exchange tax on transfers abroad. The U.S. dollar proceeds of exports of sugar and syrup must be surrendered at the official rate. No other exchange control requirements are imposed on the proceeds of exports.

Proceeds from Invisibles

Exchange earnings from invisibles are freely disposable. A limit of 50 pesos is placed on the amount of Cuban currency that a traveler may bring into Cuba.

Capital

There are no exchange control requirements on incoming capital payments by either residents or nonresidents. Outgoing capital payments exceeding US$250 require the Monetary Stabilization Fund’s prior approval, the granting of which is subject to indefinite delay.

A 2 per cent exchange tax is charged on the export of capital, on withdrawals of actual U.S. currency from banks in Cuba, even if made from U.S. dollar accounts, and on the export of securities. The tax is refunded when it is proved that the proceeds from the sale of the securities have been returned to Cuba within a specified period of time.

When duly registered with the Stabilization Fund, capital imported for investment (1) in industrial, agricultural, or other enterprises or undertakings in Cuba, (2) in securities issued by such enterprises, or (3) in securities of the State of Cuba, the Cuban Bank for Agricultural and Industrial Development, or other similar institutions, is exempt from the 2 per cent tax when it is re-exported.

Changes during 1958

January 1. By Decree No. 3795 of December 23, 1957, imports effected up to July 1, 1958 could be restricted to the maximum quantity imported in the corresponding periods of 1955, 1956, or 1957. This temporary measure was taken to permit renegotiation of duties to be based on a new Cuban customs tariff.

March 6. By Decree No. 503 of February 28, 1958, insurance to cover risks of transportation of imported items had to be issued in Cuba if the insurance was for account of the purchaser. In order to clear goods through the customs, importers were required to present an insurance certificate issued in Cuba by an insurance company authorized by the Ministry of Commerce.

March 17. By Decree No. 370 of February 22, 1958, some 250 items imported from countries with which Cuba is renegotiating customs duties were made subject to supervisory control. Quantitative restrictions could be imposed on these imports if they were found to exceed certain levels.

December 19. By Decree No. 4303, the percentage of export proceeds received in U.S. dollars that must be surrendered by exporters of sugar was increased from 30 to 75.

December 31. Instruction No. 4 of the Monetary Stabilization Fund was issued to the authorized banks. Sales of exchange by the authorized banks to pay for imports would be subject to submission of supporting evidence. Sales of exchange by banks to customers could not be made against loans in local currency. All payments (except those for imports) exceeding US$250 and the issue of travelers checks in excess of US$500 a person were made subject to prior approval from the Monetary Stabilization Fund. The instruction stated that authorizations for payments and transfers for current international transactions would be issued by the Monetary Stabilization Fund as promptly as possible.

Note.—The following changes took place early in 1959:

January 28. By Decree No. 316, a limit of 50 pesos was placed on the amount of Cuban currency that could be brought into Cuba. By Decree No. 261, the percentage of proceeds received in U.S. dollars that must be surrendered by exporters of sugar was increased from 75 to 100. Under a revised version of Instruction No. 4 (see December 31, above), all personal remittances exceeding US$1,000 had to be made by bank transfer and the banks were prohibited from issuing negotiable documents for such remittances. The banks were required to refrain from selling exchange for the sole purpose of crediting accounts maintained abroad. The authorized banks were given general permission to sell exchange to cover the expenses of Cuban students abroad to a total of US$2,000 for an academic year or US$1,000 for a semester, subject to the presentation of satisfactory proof that the student is registered with the scholastic institution named.

February 9. Under Instruction No. 6, import licensing was applied to some 195 less essential items; these goods could only be imported by opening a commercial letter of credit within 30 days after the issue of the import license.

Dominican Republic

Exchange Rate System

The par value is Dominican Peso 1.00 = US$1. U.S. dollar transactions between the Central Bank of the Dominican Republic and other banks are effected at parity. Exchange transactions by commercial banks with the public also take place at the par value, subject to small banking commissions (except on the purchase of travelers checks). The Dominican Republic has no exchange restrictions on foreign payments. All payments abroad must, however, be made through banks, and there is an exchange licensing system, but it is not exercised in a restrictive manner. On August 1, 1953, the Dominican Republic notified the Fund that it accepted the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement.

Administration of Control

Exchange licenses are issued by the Ministry of State for Finance and Banking, and the commercial banks have the obligation to submit daily applications for exchange to this ministry.

Prescription of Currency

There are no obligations imposed on importers, exporters, or other residents prescribing the method or currency for payments to or from persons resident abroad, except that all payments abroad must be made through banks.

Imports and Import Payments

With a few exceptions, import licenses are not required; but all applications for exchange have to be submitted daily by the banks for approval by the Ministry of State for Finance and Banking. This system of exchange licensing is maintained for statistical purposes and is not exercised restrictively. Licenses are issued within 24 hours after applications are filed.

Payments for Invisibles

Payments for invisibles require exchange licenses, which are issued within 24 hours after applications are filed. No restrictions are imposed on such payments.

Exports and Export Proceeds

Export licenses are required only for sugar, in connection with the operation of export quotas established under the International Sugar Agreement, and for a few other special items. No exchange control requirements are imposed on export proceeds and these may be disposed of freely.

Proceeds from Invisibles

Proceeds from invisibles are not subject to exchange control.

Capital

There are no restrictions on the movement of capital by either residents or nonresidents. Applications for exchange for capital remittances must be submitted daily by the banks for formal approval by the Ministry of State for Finance and Banking.

Changes during 1958

No significant changes took place during 1958.

El Salvador

Exchange Rate System

The par value is Salvadoran Colones 2.50 = US$1. The official rates are Ȼ 2.49 buying, and Ȼ 2.51 selling, per US$1. Exchange transactions by commercial banks with the public take place at or within these limits. There are no exchange restrictions on foreign payments, except that payments to Spain must, and payments to Nicaragua may, be made through special accounts. On November 6, 1946, El Salvador notified the Fund that it was prepared to accept the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement.

Prescription of Currency

Payments for merchandise transactions with Spain must be made through special accounts in accordance with the terms of a special payments agreement. El Salvador also has a payments agreement with Nicaragua, but payments for merchandise transactions with that country may be made either through special accounts or by other legal means. Otherwise, no obligations prescribing the method or currency of payment are imposed on residents.

Imports and Import Payments

Import licenses are not required, but a few imports are subject to regulation. Payments and transfers abroad may be made freely, but payments for imports from Spain must be made through special accounts. Because of the payments agreement with Nicaragua, some imports from that country are paid for through special accounts.

Exports and Export Proceeds

The proceeds of exports are not subject to exchange control, except that receipts from exports to Spain must be obtained through special accounts (see section on Prescription of Currency, above).

Payments for and Proceeds from Invisibles

These are not restricted.

Capital

No exchange control requirements are imposed on incoming or outgoing capital transfers by residents or nonresidents.

Changes during 1958

No significant changes took place during 1958.

Guatemala1

Exchange Rate System

The par value is Guatemalan Quetzal 1.00 = US$1. The official rates are Q 1.0000 buying, and Q 1.0075 selling, per US$1. Guatemala has no exchange restrictions on foreign payments. Purchases and sales of exchange must, however, be made through banks. On January 27, 1947, Guatemala notified the Fund that it was prepared to accept the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement.

Prescription of Currency

No obligations prescribing the method or currency for payments to or from persons resident abroad are imposed, except that all purchases and sales of exchange must be made through banks.

Imports and Import Payments

Payments and transfers abroad may be made freely through banks. A few imports are prohibited. A surcharge of 100 per cent of the customs duty is applied to products originating in or imported from countries on a special list prepared by the Government on the basis of an analytical study of foreign trade for the preceding year. As at December 31, 1958, this surcharge applied to imports from Hong Kong, India, and Japan.

Exports and Export Proceeds

The proceeds of exports are not subject to exchange control requirements, but the sale of foreign exchange must take place through a bank. Export licenses are required for a few items.

Payments for and Proceeds from Invisibles

Payments for transactions in invisibles are not restricted, except that sales and purchases of foreign exchange must be made through banks. Minor exchange transactions by tourists and other travelers are exempt from this requirement.

Capital

Incoming or outgoing capital payments by residents or nonresidents are not subject to exchange control.

Changes during 1958

April 15. Special licensing requirements were imposed on imports of tie beams and cornices, doors and windows, window blinds and jalousies, railings, gratings, balconies, and balustrades.

July 18. Imports of rubber tires, tubes, and rubber for tires were made subject to prior licensing.

September 30. Import licensing was introduced for 55 items, divided into four categories: Category A covered lard and certain textiles; Category B, cosmetics, textiles, specified articles of clothing, etc.; Category C, bacon and ham, smoked or cured meats, sausages, margarine, soups and sauces, preserved and pickled vegetables and fruits, chocolate, candies, jellies, etc., and specified articles of clothing not included in Category B; and Category D, automobiles. Licenses would be issued as follows: for goods in Category A, on a quarterly basis for amounts equal to the importer’s verified normal imports for each quarter of 1957; for goods in Category B, for amounts equal to 75 per cent of verified 1957 quarterly imports; for goods in Category C, for amounts equal to 50 per cent of average normal quarterly imports; for goods in Category D, 75 per cent of 1957 imports for vehicles priced below $2,200 and 25 per cent for vehicles priced above $2,200.

Note.—On January 15, 1959, a new customs tariff came into effect and the measures of September 30, 1958 (see above) restricting the import of 55 products in four categories were canceled.

Haiti

Exchange Rate System

The par value is Haitian Gourdes 5.00 = US$1. This is a uniform rate, applicable to all transactions. Exchange transactions by commercial banks with the public are subject to small banking commissions. Under a law of February 22, 1948, remittances abroad of amounts derived from insurance premiums are subject to a 3 per cent tax. Otherwise, Haiti has no exchange restrictions on foreign payments. On December 22, 1953, Haiti notified the Fund that it was prepared to accept the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement.

Prescription of Currency

No obligations prescribing the method or currency for payments to or from persons resident abroad are imposed.

Imports and Import Payments

There are no quantitative restrictions on imports, but a few imports are controlled for other than balance of payments reasons. Payments abroad may be made freely.

Exports and Export Proceeds

The proceeds of exports are not subject to exchange control. The export of gold coins, bullion, etc., may be effected only by the National Bank of the Republic of Haiti. A few exports are subject to license.

Payments for and Proceeds from Invisibles

Payments for invisibles are not restricted, except for a 3 per cent tax on the remittance abroad of amounts derived from premiums collected by insurance companies. No exchange control requirements are applied to proceeds from invisibles. A regulation, which is seldom applied, prohibits the export and import of U.S. banknotes in denominations of over $20.

Capital

Incoming and outgoing capital payments by residents or nonresidents are not subject to exchange control requirements. Under a decree of June 27, 1957, revising a law of August 14, 1952, private banks operating in Haiti are required to keep in the form of domestic assets up to 80 per cent of the amount of deposits collected from residents of Haiti.

Changes during 1958

No significant changes took place during 1958.

Honduras

Exchange Rate System

The par value is Honduran Lempiras 2.00 = US$1. The official rates are L 2.00 buying, and L 2.02 selling, per US$1. Honduras has no exchange restrictions on foreign payments. Earners of foreign exchange wishing to negotiate the exchange in Honduras may do so only with the Central Bank of Honduras or through the banking system for account of the Central Bank. Exchange may be purchased from local banks without restriction; however, for statistical purposes, buyers are required to file an application stating how the exchange will be used. On August 19, 1950, Honduras notified the Fund that it had assumed the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement, beginning July 1, 1950.

Prescription of Currency

No obligations prescribing the method or currency for payments to or from persons resident abroad are imposed.

Imports and Import Payments

Import licenses are required for a few items. Payments and transfers abroad may be made freely; however, for statistical purposes, buyers of exchange are required to file an application stating how the exchange will be used.

Exports and Export Proceeds

The proceeds of exports are not subject to exchange control. The foreign exchange may be retained or used for international transactions. Those wishing to negotiate their exchange in Honduras may do so only with the Central Bank or through the banking system for account of the Central Bank. All exports, re-exports, and transshipments to countries of the Soviet bloc are prohibited.

Payments for and Proceeds from Invisibles

These are not restricted.

Capital

Capital payments are not subject to exchange control.

Changes during 1958

No significant changes took place during 1958.

Mexico

Exchange Rate System

The par value is Mexican Pesos 12.50 = US$1. The official rates are Mex$12.49 buying, and Mex$12.51 selling, per US$1. Exchange transactions by commercial banks with the public take place at market rates fluctuating within these limits. The closing market rate on December 31, 1958 was Mex$12.49 per US$1. Mexico has no exchange restrictions on foreign payments, except that payments to two countries with which Mexico has payments agreements may be made through special accounts. The granting of some import licenses is subject to quantitative restriction. On November 12, 1946, Mexico notified the Fund that it was prepared to accept the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement.

Prescription of Currency

No obligations prescribing the method or currency for payments to or from persons resident abroad are imposed on importers, exporters, or others. Payments for transactions with Spain and Czechoslovakia may be recorded by the Bank of Mexico through special accounts. (Mexico has a payments agreement with Czechoslovakia; the agreement with Spain is between the Bank of Mexico and the Spanish Foreign Exchange Institute.)

Imports and Import Payments

Payments and transfers abroad are made freely. Payments for imports from Czechoslovakia and Spain may be recorded through special accounts. For a considerable number of items, a prior import license must be obtained from the Ministry of Economy before firm orders are placed; the issuance of such licenses is subject to quantitative restriction. Imports of certain goods (assembled and unassembled automobiles and trucks, iron and steel pipes, firearms, watches, synthetic fibers, some types of jewelry, radios and television sets, whisky, wines, and other liquors, equipment and machinery) are licensed only if the importer guarantees the export of an equivalent amount of certain listed commodities, mainly cotton.

Payments for Invisibles

Payments for invisibles are not restricted. Such transactions with certain countries may be recorded through special accounts (see section on Prescription of Currency, above). The contracting of insurance with foreign companies for persons in Mexico, or on property of Mexican ownership, or where the risks are for the account of persons in Mexico or may occur in Mexico, is permitted only with branches established in Mexico in accordance with Mexican law.

Exports and Export Proceeds

No exchange control requirements apply to the proceeds of exports. Certain exports require export licenses.

Proceeds from Invisibles

No exchange control requirements apply to proceeds from invisibles.

Capital

No exchange control requirements apply to incoming or outgoing capital payments by residents or nonresidents.

Changes during 1958

On various dates during the year, additions to and removals from the list of items subject to restrictive import licensing were made.

October 1. All exports of lead and zinc were prohibited temporarily in order to relate the export licensing to the import quotas fixed by the U.S. Government.

Panama

Exchange Rate System

The par value is Panamanian Balboa 1.00 = US$1. U.S. currency notes circulate freely in Panama, and local currency is represented only by the silver balboa and subsidiary coins. Exchange transactions by commercial banks are based on New York market quotations. Panama has no exchange restrictions on foreign payments. On November 26, 1946, Panama notified the Fund that it accepted the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement.

Prescription of Currency

There are no obligations imposed on importers, exporters, or other residents prescribing the method or currency for payments to or from persons resident abroad.

Imports and Import Payments

Payments abroad may be made freely. Import licensing is in effect for a few items and a few imports are subject to quantitative restriction.

Exports and Export Proceeds

The proceeds of exports are not subject to exchange control. Export permits are required for a few items and a few exports are prohibited.

Payments for and Proceeds from Invisibles

These are not restricted.

Capital

No exchange control requirements are imposed on incoming or outgoing capital payments by residents or nonresidents.

Changes during 1958

No significant changes took place during 1958.

United States

Exchange Rate System

The par value of the United States Dollar is 15521 grains of gold 910 fine, which is equivalent to US$35 per fine ounce, at which price (with allowance for handling charges and expenses) the Treasury buys gold from and sells gold to governments, central banks, and other official institutions of other countries. There are no restrictions on foreign payments, except on transactions involving the authorities or nationals of Mainland China or North Korea. The United States notified the Fund on December 10, 1946 that it was prepared to accept the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement.

Administration of Controls

The Treasury Department deals with license applications for transactions involving the authorities or nationals of Mainland China or North Korea. Licenses in the form of “Certificates of Intention” for imports of lead and zinc are issued by the Bureau of Customs of the Treasury Department. Licenses required for agricultural and dairy products placed under import quota are issued by the Department of Agriculture. For items subject to export control (see section on Exports and Export Proceeds, below), the Department of Commerce is, in general, the responsible authority.

Imports and Import Payments

Payments and transfers abroad may be made freely, with the exception of payments to or for the account of the authorities or nationals of Mainland China and North Korea, which are permitted only under license. Imports of merchandise known or believed to be of Chinese Communist or North Korean origin are subject to license. There are import quotas for lead and zinc and for certain dairy and agricultural products, including sugar from most producing countries. Special import quotas apply to cordage and to sugar from the Philippines under the Philippine Trade Act of 1946 as revised.

Exports and Export Proceeds

Exports to countries in the European Soviet bloc, with the exception of designated nonstrategic goods, and all exports to Mainland China and North Korea are subject to license. In general, exports of strategic materials to other countries and of the relatively few materials remaining in short supply also require licenses. The proceeds of exports are not subject to exchange control.

Payments for and Proceeds from Invisibles

These are not restricted, except where they involve Mainland China or North Korea.

Capital

Incoming or outgoing capital payments by residents or nonresidents are not subject to exchange control, except to the extent that the provisions referred to above regarding Mainland China or North Korea are involved.

Changes during 1958

May 1. The Egyptian Assets Control Regulations, which had placed under licensing procedure certain assets of the Suez Canal Company and the Egyptian Government, were revoked.

October 1. Imports of lead and zinc were limited by an annual quota equivalent to 80 per cent of the annual average of commercial imports during 1953-57.

Venezuela1

Exchange Rate System

The par value is Venezuelan Bolívares 3.35 = US$1. An official selling rate of Bs 3.35 per US$1 applies to all sales of exchange except those for government payments. The corresponding buying rate fluctuates around Bs 3.33 per US$1 and applies to all purchases of exchange except those from the petroleum companies and, under certain conditions, from exporters of cacao and coffee. A multiple exchange rate system operates, comprising preferential rates for both government imports and the proceeds of coffee and cacao exports and special buying rates applied to purchases of exchange from the petroleum companies. (See Table of Exchange Rates, below.) There is no system of payment licenses, and only a few import restrictions are maintained, principally for protective purposes.

Administration of Control

Most of the few import and export licenses required are issued by the Office of Foreign Commerce of the Ministry of Development; the Ministry of Agriculture licenses some imports. Under the terms of a contract with the Government, the Central Bank of Venezuela has the responsibility for ensuring that the special exchange rates are applied to the appropriate transactions.

Prescription of Currency

No prescription of currency requirements are in force.

Imports and Import Payments

Some items are subject to import license and import quotas are applied to a few commodities for protective purposes. Licenses for some products are issued on the condition that the importer has purchased domestic products equal to a prescribed percentage of the amount imported. No restrictions are imposed on payments for imports.

Exports and Export Proceeds

There are no limitations on exports, but the export of strategic materials to certain countries is prohibited and export licenses for a few products essential to the domestic economy must be obtained from the Ministry of Development. The export of gold requires an export license issued by the Ministry of Finance. The petroleum companies must surrender export proceeds to the extent of their local currency requirements at a rate of Bs 3.09 per US$1 ; a rate of Bs 3.046259 per US$1 is applied to exchange surrendered by them in excess of the Central Bank’s sales of exchange to domestic buyers during any one year. The proceeds of exports other than petroleum are sold at the Bs 3.33 rate, but if the world prices for cacao and coffee are below certain levels, a proportion of the proceeds of exports of cacao and unwashed coffee may be sold at a rate of Bs 4.25, and of exports of washed coffee at a rate of Bs 4.80, per US$1.

Payments for and Proceeds from Invisibles

Payments for invisibles may be made freely at the Bs 3.35 rate. Exchange receipts from invisibles are freely disposable or may be sold at the Bs 3.33 rate.

Capital

Payments for transfers of capital may be made freely at the Bs 3.35 rate. Exchange receipts from capital are freely disposable or may be sold at the Bs 3.33 rate.

Table of Exchange Rates (as at December 31, 1958)(bolívares per U.S. dollar)
BuyingSelling
3.046259

Local currency requirements of petroleum companies in excess of the Central Bank’s foreign exchange sales during the given year.
3.09

Local currency requirements of petroleum companies up to the limits of the Central Bank’s foreign exchange sales during the given year.
3.092

Government payments.
3.33

Exports of coffee and cacao in a proportion depending on world prices. All other exports except petroleum. Invisibles. Capital.
3.35

All other payments.
4.25

Exports of cacao and unwashed coffee in a proportion depending on world prices.
4.80

Exports of washed coffee in a proportion depending on world prices.
Note: The rates shown above for exports of coffee and cacao need not be effective rates, since the exchange rates at which the proceeds of these exports are purchased are varied in accordance with the world prices for these commodities. The special rates for coffee have not been applied in recent years, as international prices have been higher than the maximum level below which the special rates would apply. Taxes of Bs 2 and Bs 1½ per 46 kilograms are levied on exports of washed and unwashed coffee, respectively, when the foreign exchange proceeds are converted at premium rates.

Changes during 1958

April 16. Imports of iron and steel bars were made subject to licensing by the Ministry of Development.

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