Chapter

Nonmember Countries

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

Exchange Rate System

The Cambodian Riel is defined as having a weight of 25.3905 milligrams of fine gold. Transactions in foreign currency are carried out on the basis of the rates published by the National Bank of Cambodia. These basic rates are 35 riels = 1 U.S. dollar, 98 riels = 1 pound sterling, and 10 riels = 100 French francs.

Administration of Control

Exchange control is administered by the National Exchange Office in conjunction with the National Bank of Cambodia; the details are carried out by authorized banks. Import and export control is the responsibility of the Minister of National Economy, who delegates this authority to the Director of Foreign Trade. Import licenses are granted by the National Import Committee, and exchange allocations are made by the Committee for the Allocation of Foreign Exchange.

Prescription of Currency

The method of payment or receipt for settlements with other countries is specified in each license. However, payments agreements with Mainland China, Czechoslovakia, Laos, Poland, and the U.S.S.R. provide for settlements with those countries through special accounts.

Nonresident Accounts

Four types of account may be maintained by foreigners or nonresidents with authorized banks: Foreigners’ Accounts in Riels, Capital Accounts, Interior Accounts of Nonresidents, and Nonresident Accounts.

Imports and Import Payments

Practically all imports require import licenses. Only imports of listed commodities are authorized, including imports paid for with freely available EFAC funds (see section on Exports and Export Proceeds, below). Applications to import are considered only from licensed importers. Imports must be recorded with an authorized bank. Various essential commodities may be imported against balances on EFAC accounts or under licenses benefiting from the “10 Per Cent Equipment and Raw Materials” procedure; exceptions are prohibited goods and goods that might compete with local production.

Certain listed goods may be imported from Bangkok, Hong Kong, or Singapore under private compensation arrangements without payment, provided that double the amount of goods has been exported and the difference is repatriated. In such cases, an import license is not required, but the necessary exchange control documents must be provided and the transaction recorded with an authorized bank.

Payments for Invisibles

The prior approval of the National Exchange Office is required for all payments for invisibles. Foreigners residing temporarily in Cambodia, or working under contract to public authorities or private enterprises, including professionals, are permitted to transfer a maximum of 30 per cent of their monthly income, plus an additional 15 per cent if the applicant’s wife is in his own country and an additional 10 per cent if he has children in his own country for whose support he is responsible. Remittances from persons earning less than 5,000 riels monthly in Phnôm-Penh or less than 3,500 riels monthly in the provinces are prohibited. Travelers going abroad as tourists receive an allocation of exchange varying with the country or countries of destination. Resident travelers may buy freely one-way or return tickets for foreign travel starting from Cambodia; tickets for other journeys require licenses. A traveler may take out no more than 400 riels in domestic banknotes. The export of foreign banknotes is subject to license but nonresident travelers may take out the amount they imported less any exchange sold.

Exports and Export Proceeds

In general, exports require export licenses, but certain listed items may be exported against an export certificate showing how the exchange proceeds will be settled and repatriated and supported by a banker’s guarantee. Exports must be recorded with an authorized bank and the exchange proceeds surrendered. However, 13 per cent of the proceeds of exports payable in U.S. dollars or another currency of the dollar area and 10 per cent of the proceeds of exports payable in other currencies may be retained in special EFAC (Exportations–Frais Accessoires) accounts and used by the exporter or supplier of the goods either to pay certain commercial expenses or to pay for imports of any merchandise that is not prohibited. U.S. dollars and other currencies of the dollar area in EFAC accounts may be exchanged for any other EFAC currency, and the currencies of the OEEC area may be exchanged for one another.

Certain listed goods may be exported to Bangkok, Hong Kong, or Singapore under private compensation arrangements, provided that half the value of the goods is imported and that the other half is repatriated in foreign exchange. In such cases, exchange control documents must be provided and the transaction recorded with an authorized bank.

Proceeds from Invisibles

All residents of Cambodia, other than foreigners, must surrender to an authorized bank foreign exchange received by them. A traveler may bring in not more than 400 riels in domestic banknotes. Foreign banknotes may be brought in freely, subject to declaration, but residents have an obligation to surrender such notes within seven days.

Capital

There is a distinct difference in the exchange treatment given to foreign investments, according to whether they were made before or after May 31, 1956.

All new (i.e., made after May 31, 1956) foreign investments in Cambodia require prior authorization from the Ministry of Finance; authorization depends, among other things, on a minimum participation of domestic capital. New foreign capital invested in Cambodia must be in foreign exchange acceptable to the National Bank. Profits of up to 20 per cent on new foreign investments may be transferred and, in the event of liquidation, capital of up to 20 per cent a year may be repatriated, in the currency of the original investment.

For foreign investments made before May 31, 1956, profits may be remitted abroad after payment of an Exceptional Equipment Tax, as follows: On profits relating to the year 1957, the tax rates are 32 per cent on profits of rubber plantations, 47 per cent on profits of companies whose activities are vital for the Cambodian economy, and 52 per cent on profits of other companies recognized as useful for the economic development of Cambodia. The tax rates on profits of foreign companies with head offices in Cambodia are reduced by 10 per cent for companies whose capital is more than 40 per cent Cambodian and by 5 per cent for companies whose capital is between 30 per cent and 40 per cent Cambodian. In the event of liquidation of such investments, 10 per cent of the original capital may be remitted each year.

Changes during 1958

January 1. New regulations concerning remittances abroad of earnings in Cambodia came into force. All foreigners residing temporarily in Cambodia, or working under contract to public authorities or private enterprises, including professionals, were permitted to transfer a maximum of 30 per cent of their monthly income. This percentage could be increased by 15 per cent if the applicant’s wife was in his own country and by 10 per cent if he had children in his own country for whose support he was responsible. The percentages were to be calculated on the net monthly income actually paid by the employer, less any dues and taxes paid. The regulations did not apply to monthly incomes of less than 5,000 riels for persons living in Phnôm-Penh and less than 3,500 riels for persons living in the provinces, since no transfers may be made from these incomes.

January 17. The trade and payments agreement with Poland, signed on December 17, 1957, came into effect.

January 30. New import control regulations came into force. Cash deposits with the National Treasury were required: for importers of Cambodian nationality the deposit was 200,000 riels and for foreigners it was 400,000 riels, for each of the 14 groups of products they might want to import. In addition, importers were under strict requirements to obtain a license, to state clearly the groups of products they wished to import, to have a regular place of business with a legal percentage of local employees, to furnish proof of adequate financial resources, and to furnish proof of actual residence in Cambodia for at least three years. A Committee for the Allocation of Foreign Exchange was created in the Ministry of National Economy.

June 1. Import regulations were tightened. Imports “without foreign exchange,” regardless of the origin of the goods, and imports of fresh, dry, or canned fruit and vegetables, matches, and firecrackers were prohibited. Only essential items were permitted to be imported against balances on EFAC accounts. At the same time, the system of guarantees which required importers to make cash deposits (see January 30, above) was relaxed to permit the cash deposits to be replaced by bank guarantees.

November 25. A regulation (Kram 288-NS) established the principle of declaring foreign holdings in Cambodia and defined the extent of the control over them.

Laos

Exchange Rate System

The official rate is Laotian Kips 80 = US$1, at which rate the National Bank of Laos buys and sells U.S. dollars. Exchange rates for other currencies are based on this rate.

Prescription of Currency

No prescription of currency requirements are imposed on receipts or payments.

Imports and Import Payments

Import licenses are not required. Certain imports are prohibited for reasons of public order. Payments for imports may be made freely.

Exports and Export Proceeds

All exports are free of licensing. There are no exchange surrender requirements; exporters may retain their export proceeds or sell them.

Payments for and Proceeds from Invisibles

All payments for invisibles may be made freely, and no exchange surrender requirements are applied to proceeds from invisibles. Foreign and domestic banknotes may be exported and imported freely.

Capital

Foreign investment in Laos is not subject to any requirements. There are no limitations on the remittance of profits or the repatriation of capital.

Changes during 1958

January 3. The issue of import licenses was suspended.

February 21. The issue of import licenses was resumed.

October 10. A presidential decree authorized the National Bank of Laos to buy and sell U.S. dollars at the rate of K 80 per US$1. All commercial banks were authorized to buy and sell dollars at the same rate, as well as to buy and sell freely all kinds of foreign exchange. At the same time, all imports and exports of merchandise (except those prohibited for reasons of public order) were freed from licensing and all formalities related to financial transfers were abolished.

Liberia

Exchange Rate System

The Liberian Dollar is at par with the U.S. dollar. U.S. currency is in circulation along with Liberian coinage in silver and copper. Official accounts are kept in dollars and cents. There are no restrictions on foreign exchange transactions.

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

There is no general system of import control. A few items require prior licenses. A permit is required from the Secretary of the Treasury for the import of currency into Liberia.

Exports and Export Proceeds

Export licenses are not required, except for precious metals and precious stones. The surrender of the proceeds from exports is not required and exchange receipts are freely disposable.

Payments for and Proceeds from Invisibles

There are no limitations on payments for or receipts from invisibles. There are, however, restrictions on the circulation of U.S. banknotes in denominations over $20.

Capital

No exchange control obligations are imposed on capital receipts or payments.

Changes during 1958

No significant changes took place during 1958.

New Zealand1

Exchange Rate System

The official rates for the New Zealand Pound in terms of non-sterling currencies are based on the fixed rate for sterling–N.Z. pounds and the rate for the currency concerned in the London market, maintained between the official limits. As at December 31, 1958, the trading banks’ rates for telegraphic transfers on London were £NZ 100/7/6 buying, and £NZ 101/–/– selling, per £100, and for U.S. dollars they were $2.7976 buying, and $2.7658 selling, per £NZ 1.

Administration of Control

Exchange control authority is given to the Minister of Finance, who, in accordance with the terms of the regulations, has delegated it to the Reserve Bank of New Zealand; however, much of the routine supervision is done by the trading (commercial) banks. Import licensing is handled by the Customs Department.

Prescription of Currency

New Zealand, as one of the territories in the Sterling Area, conforms to the prescription of currency arrangements and the payments system of the United Kingdom. Payments to and from others parts of the Sterling Area may be made in any Sterling Area currency. Authorized payments to countries outside the Sterling Area may be made in sterling to the credit of an External Account or in any other currency, and the proceeds of exports to countries outside the Sterling Area may be received in sterling from an External Account or in any specified currency.

Imports and Import Payments

All imports are subject to license. An import licensing program is published for each calendar year. The program for 1959 is as follows: For imports not marked “M,” licenses are granted for imports from any source on the basis of a percentage of the value of licenses granted for imports of similar goods from all sources during the 1958 licensing period or for an indicated percentage of the value of imports made by the importer in his own name from all sources during 1956 or 1957.

For those marked “M,” licenses are granted for non-dollar imports2 on the basis of a percentage of the value of licenses granted for nondollar imports of similar goods during the 1958 licensing period or for an indicated percentage of the value of non-dollar imports made by the importer in his own name during 1956 or 1957. For imports designated by the letter “C,” licenses are granted on an individual basis. For another group of items, marked “D,” licenses are granted only in exceptional circumstances.

Exchange appropriate to the exporting country is made available for all authorized imports.

Payments for Invisibles

Payments for invisibles require the approval of the Reserve Bank. Payments to the Sterling Area are not restricted, except for travel and a few minor items. An exchange allowance of £NZ 200 for each adult for the period ending October 31 each year is granted for nonbusiness travel in non-sterling, non-dollar countries, and of £NZ 7 a day for up to 20 days with an additional £NZ 3 a day for the first 5 days, up to a maximum of £NZ 150, for nonbusiness travel in dollar countries. The remittance of profits, interest, and dividends earned by nonresidents is permitted freely, subject to formal approval by the Reserve Bank. Other remittances to countries outside the Sterling Area are treated on their merits, strict scrutiny being given to remittances to hard currency areas.

Exports and Export Proceeds

All exports require export licenses. These are issued by the Customs Department, provided that the transaction is being cleared through a trading bank through which the net export proceeds will be received in accordance with the regulations (see section on Prescription of Currency, above) and that the foreign exchange will be surrendered to the banking system.

Proceeds from Invisibles

All receipts of currencies other than those of the Sterling Area must be offered to the Reserve Bank; they may be sold to a trading bank in New Zealand, but they may not otherwise be sold or dealt in without permission. No control is exercised over the disposal of receipts of Sterling Area currencies other than from exports.

Capital

Transactions in non-sterling securities owned by New Zealand residents require the prior permission of the Reserve Bank. All outward capital remittances require prior approval. Capital receipts in currencies other than those of the Sterling Area must be offered to or declared to the Reserve Bank. No control is exercised over the disposal by New Zealand residents of capital receipts in Sterling Area currencies.

Changes during 1958

January 1. All previous import licensing exemptions and the 1958 Import Licensing Schedule, published August 2, 1957, were canceled. A new Import Licensing Schedule issued for 1958 provided for the following categories of imports: “A” included goods that could be imported up to the amount applied for, provided the amount was within the importer’s normal pattern of business; “B” or “B with a percentage” included goods for which licenses would be issued up to the total amount, or a percentage, of the value of licenses granted for 1958, less imports shipped in 1957 under these licenses; “C” included goods for which license applications would be considered individually; “items with a percentage only” included goods for which licenses would be granted for a percentage of the value of the imports of consumer goods from nonscheduled countries made by the importer in 1956; “items with a percentage of 1957” included goods for which licenses would be granted up to a percentage of the value of licenses granted for similar imports during the 1957 licensing period; and “D” included goods for which licenses would be granted only in exceptional circumstances.

March 17. All import items that were exempted from licensing before the original 1958 Import Licensing Schedule was issued were reallocated among the new import categories. Thus, Category “A” was enlarged by 66 items, including drugs, gypsum, medical instruments, ball bearings, X-ray tubes, carbons and electrodes, lubricating oils, turpentine, rosin, dried prunes, plastic molding powders, and certain iron products. Category “items with a percentage only” was enlarged by 39 items, for which the percentage quotas for imports from scheduled or nonscheduled countries were the same. The items included engines for motor vehicles (75 per cent), engines for tractors (90 per cent), tractor spare parts (90 per cent), measuring, counting, and testing machines (75 per cent), aluminum, brass, copper, lead, and tin in bars and rods (100 per cent), patent leather (100 per cent), etc. A number of products were added to Category “C.”

October 7. The Import Licensing Schedule for 1959 was issued. Category “A” imports were abolished and most goods previously included in it were reallocated to other categories. Category “C” and Category “D” (which was enlarged by a number of items) were retained. The remaining imports were divided into those designated “M,” which might be imported from any non-dollar source, and those not so designated, which could be imported from any country. Licenses for these goods are granted either for a percentage of the value of licenses granted for imports of similar goods from all sources during 1958 or for a percentage of the value of imports made by the importer in his own name during 1956 or 1957 (see section on Imports and Import Payments, above).

Note.—In January 1959, following similar changes in the exchange control system of the United Kingdom, New Zealand simplified its prescription of currency regulations. Authorized payments to countries outside the Sterling Area may now be made in sterling to the credit of an External Account or in any other currency, and the proceeds of exports to countries outside the Sterling Area may be received in sterling from an External Account or in any specified currency.

Portugal

Exchange Rate System

The parity of the Portuguese Escudo in terms of the U. S. dollar is Esc 28.75 = US$1. The official limits are Esc 28.60 buying, and Esc 28.95 selling, per US$1, at which rates the exchange authorities stand ready to deal, and the rate for the U.S. dollar fluctuates in the exchange market between these limits. Market rates for the other externally convertible European currencies1 vary between limits resulting from the dollar rate for the escudo in relation to the dollar rates for the other currencies.

Exchange Control Territory

Portugal and Portuguese overseas territories2 constitute a single exchange control territory, the Portuguese Monetary Area. The exchange control regulations of Portugal are applied almost uniformly throughout the area, and current payments between the various territories are made freely through controlled accounts.

Administration of Control

Exchange controls are administered by the Ministry of Finance and the Bank of Portugal, with the assistance of the commercial banks authorized for this purpose. Trade control policy is the responsibility of the Commission of Economic Coordination in the Ministry of Economy and of the Council of Ministers; a Directorate-General of Commerce in the Ministry of Economy administers trade controls; and import and export licenses are issued by the Department for Licensing Foreign Trade, operating within the Directorate-General’s office.

Prescription of Currency

Settlements on account of merchandise transactions and invisibles are made in the currency and manner prescribed in the regulations, largely on the basis of the provisions of Portugal’s bilateral trade and payments agreements. For imports from Austria, Belgium-Luxembourg, Denmark, Finland, France, the Federal Republic of Germany, the Netherlands, Norway, Sweden, Switzerland, the United Kingdom, and their monetary areas, payment is made in the currency of the selling area. Payments for imports from Brazil, Greece, Israel, Italy, and Turkey are made in agreement dollars; for imports from Chile, Spain, and the United Arab Republic (Egyptian Region), in escudos; and for imports from Czechoslovakia, East Germany, Hungary, and Poland, in the related clearing account currency. Payments for imports from other countries may be made in U.S. dollars or any other currency. The regulations governing the method of settlement for exports are similar, except that for exports to most Western European countries the proceeds may, alternatively, be received in escudos. Any deviation from the general regulations in this matter requires the approval of the Bank of Portugal.

Nonresident Accounts

Nonresidents’ accounts in escudos may be converted freely into any other currency at the market rates.

Imports and Import Payments

All imports are subject to registration, mainly in order to enforce the prescription of currency regulations. The presentation of the registration form to the customs enables the import to be cleared. Some imports from OEEC countries and their overseas territories, imports from other than OEEC countries payable in the currency of any OEEC country, and most imports from other countries require individual licenses, which are issued with the registration forms. For certain listed goods from the dollar area, import licenses are issued automatically. Many goods valued at less than Esc 2,500 may be imported freely from OEEC countries, their associated territories, and Spain. Appropriate exchange is granted automatically for authorized imports.

Payments for Invisibles

All payments on account of invisibles that are made in foreign currency or by crediting a nonresident account, and that exceed Esc 2,500, require individual licenses; for lesser amounts, the applicant must undertake to supply documentary evidence of the obligation, should proof be required later. Payments to countries with which Portugal has payments agreements are permitted freely within the terms of the relevant agreement. Payments in favor of residents of any OEEC country are permitted freely, without any limitation on the amount, on account of costs incidental to exports and imports, and up to Esc 100,000 on account of various other categories of current payments. Travelers may take out any amount in Portuguese and foreign banknotes.

Exports and Export Proceeds

All exports are subject to registration, mainly in order to enforce the prescription of currency and surrender regulations. Certain exports to any country, and all exports to other than OEEC countries payable in an OEEC currency, are subject to individual license. Export proceeds must be surrendered. The issue of licenses for the export of carob beans is conditional on the sale of an equal quantity of carob beans to the domestic industry at prices fixed by the National Fruit Board.

Proceeds from Invisibles

Payments from residents of OEEC countries may be received freely by Portuguese residents on account of costs incidental to exports and imports, without any limitation on the amount, and on account of a variety of other categories of invisibles, up to Esc 100,000. The individual permit of the Bank of Portugal is required in all other cases. Exchange receipts from invisibles must be surrendered. Travelers may bring in any amount in Portuguese and foreign banknotes.

Capital

Transfers of capital to countries with which Portugal has payments agreements are permitted freely within the terms of the relevant agreement. Other capital transfers require specific approval. Exchange receipts from capital transactions must be surrendered.

Changes during 1958

April 29. Portugal became a participant in the Finnish multilateral arbitrage arrangement.

June. A number of articles were excluded from the list of products which, when valued at less than Esc 2,500, may be imported freely from OEEC countries, their associated territories, and Spain; among the articles excluded were forks, spoons, and cutlery, corkscrews, can openers, nail buffers, zippers, costume jewelry, and buttons.

June 9. A trade and payments agreement with Israel became effective; under the agreement, payments between the two countries were to be made in agreement dollars.

July 18. Steel wool and shavings were excluded from the list of products which, when valued at less than Esc 2,500, may be imported freely from OEEC countries, their associated territories, and Spain.

November. Additional articles were excluded from the list of products which, when valued at less than Esc 2,500, may be imported freely from OEEC countries, their associated territories, and Spain; among the excluded articles were chalk, sodium and potassium salts, transmission belts, rubber products, electrical wires and cables, frames for eyeglasses, ink, colors, dyes, and varnishes.

December 29. The Portuguese escudo was declared externally convertible, in common with most other Western European currencies. Portuguese escudos in nonresident accounts became freely convertible into other currencies.

Switzerland

Exchange Rate System

The gold content of the Swiss Franc is established at 63/310 (= 0.20322 …) grams of fine gold. The Swiss National Bank maintains the U.S. dollar rate in a free market between limits of Sw F 4.295 buying, and Sw F 4.45 selling, per US$1. The free market rate on December 31, 1958 was Sw F 4.3075 per US$1. Market rates for the other externally convertible European currencies1 vary between limits resulting from the dollar rate for the Swiss franc in relation to the dollar rates for the other currencies. Exchange is controlled in respect of most transactions with countries with which Switzerland has bilateral agreements or in respect of which Switzerland has enacted autonomous regulations. Bilateral agreements cover Switzerland’s trade and/or payments with 10 countries or monetary areas,2 and Switzerland controls its payments with 3 others.3 In accordance with the provisions of several of these agreements, official rates are applied to transactions covered by the agreements. This domain of regulated settlements is known as the sector of controlled payments. All settlements outside this sector (including those with all other countries) may be made freely at free market rates.

Exchange Control Territory

For all purposes of import, export, and payments control, the Principality of Liechtenstein is included in the Swiss customs territory for the duration of the treaty of March 29, 1923 between Switzerland and the Principality of Liechtenstein concerning the union of the Principality of Liechtenstein with the Swiss customs territory.

Administration of Control

The authority to impose measures for the control of imports, exports, and payments is vested in the Swiss Federal Council acting, as a rule, on the proposals of the Federal Department of Public Economy or the Federal Political Department. The Swiss National Bank is the executive authority in matters of currency, and the Swiss Compensation Office, together with the authorized banks, is entrusted with the operative part of payments control.

Prescription of Currency

The currency and manner of settlement on account of merchandise transactions and invisibles in the sector of controlled payments are prescribed in accordance with the provisions of the relevant payments agreements and/or by the Swiss regulations. Settlements with countries in this sector are made in Swiss franes; however, settlements with the Egyptian Region of the United Arab Republic may be made in Egyptian pounds. In all other cases, settlements are not subject to regulations involving prescription of currency.

Nonresident Accounts

Nonresident accounts related to the sector of controlled payments may be grouped as follows: (1) accounts related to Bulgaria, Czechoslovakia, Greece, Hungary, Poland, Rumania, the Spanish Monetary Area, Turkey, Uruguay, and Yugoslavia, which are centralized with the Swiss National Bank, and (2) the “decentralized” group, comprising accounts that may be held with the Swiss National Bank and with authorized banks in Switzerland. The accounts of the second group are of two kinds: the accounts of East Germany and Iran, which are transferable only to other accounts of the same nationality, and the accounts of the Egyptian Region of the United Arab Republic, which are subject to special treatment.

Nonresident accounts concerned with transactions outside the sector of controlled payments—mainly those related to countries not listed above—may be transferred freely among themselves.

Imports and Import Payments

Certain goods are admitted into Switzerland on the basis of import licenses only; but in accordance with Switzerland’s present liberal import policy, licenses are, generally speaking, granted without quantitative limitation. However, quotas are established for certain agricultural products and, in the category of industrial products, for heavy motor vehicles. Imports from OEEC countries are liberalized in accordance with the OEEC code of liberalization; imports from dollar area countries are subject to the same regime.

Settlements are made automatically for authorized imports from countries to which the Swiss control regulations are applicable, i.e., the sector of controlled payments. Payments for imports from all other countries may be made freely through the free market.

Payments for Invisibles

Payments for invisibles may be made freely insofar as the application of bilateral agreements does not necessitate control over such payments. The export of Swiss and foreign banknotes is free.

Exports and Export Proceeds

The export (including re-export) of many goods is subject to export control through individual licenses. This export licensing system is operated in part with the assistance of appropriate trade organizations. Proceeds accruing from exports to countries in the sector of controlled payments are converted into Swiss currency in observance of the existing regulations. Other export proceeds are freely disposable.

Proceeds from Invisibles

Proceeds from invisibles originating in countries in the sector of controlled payments are converted into Swiss francs in observance of the existing regulations. Proceeds from other countries are freely disposable. The import of Swiss and foreign banknotes is free.

Capital

Transfers of capital from countries in the sector of controlled payments require licenses if they are made through the sector of controlled payments; transfers of capital to such countries do not require licenses. Transfers of capital to and from other countries may be made freely, except that certain outgoing transfers of capital exceeding Sw F 10 million each require permission.

Banknotes

Foreign banknotes are negotiated freely in Switzerland at rates determined by the interplay of supply and demand.

Changes during 1958

January 1. A number of changes were made in the nonresident accounts related to the sector of controlled payments. For transfers to the “decentralized” group, the limit beyond which a transfer notification for payments had to be submitted through an authorized bank to the Swiss Compensation Office was raised from Sw F 500 to Sw F 1,000; and documentary proof was required for payments for Swiss goods and services exceeding Sw F 5,000, instead of Sw F 3,000 as hitherto.

December 29. The Swiss National Bank’s official limits for transactions in U.S. dollars were changed from Sw F 4.285 buying, and Sw F 4.46 selling, per US$1, to Sw F 4.295 buying, and Sw F 4.45 selling, per US$1.

December 30. The control of payments was abolished for the Belgian Monetary Area, Denmark, the French Monetary Area, the Federal Republic of Germany and West Berlin, Italy and Italian Somaliland, the Netherlands, the Netherlands overseas territories, and Indonesia, Norway, the Portuguese Monetary Area, Sweden, and the United Kingdom and other territories of the Sterling Area.4

In view of certain changes that took place early in 1959 (see note at the end of this survey), this survey presents the position as at February 9, 1959.

In view of the change made on January 15, 1959 (see note at the end of this survey), this survey presents the position as at that date.

Venezuela has not notified the Fund that it is prepared to accept the obligations of Article VIII, Sections 2, 3, and 4, of the Fund Agreement. This survey is included in this group since the Fund does not consider that Venezuela applies exchange measures under Article XIV.

Since January 30, 1959, under an agreement of that date between the National Government and the Central Bank, the rate of Bs 3.09 per US$1 applies only to obligations contracted before March 18, 1958. For later obligations, a rate of Bs 3.335 per US$1 applies to foreign exchange provided by the Central Bank to the National Government, according to the requirements of the Executive Offices, for making direct payments abroad.

In view of changes in the New Zealand regulations in January 1959, this survey presents the position as at January 31, 1959.

That is, imports from any source other than scheduled countries that correspond to the dollar area. Scheduled countries are listed in the New Zealand regulations as Bolivia, Canada, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Korea, Liberia, Mexico, Nicaragua, Panama, Philippines, United States, and Venezuela.

Austrian schillings, Belgian (Luxembourg) francs, Danish kroner, deutsche mark, French francs, Italian lire, Netherlands guilders, Norwegian kroner, pounds sterling, Swedish kronor, and Swiss francs.

The Azores, Madeira, the Cape Verde Islands, Portuguese Guinea, São João, Baptista de Adjuda, the Islands of São Tomé and Principe, Angola, Mozambique, Portuguese Indies (Goa, Damão, Diu), Macao, and Portuguese Timor.

Austrian schillings, Belgian (Luxembourg) francs, Danish kroner, deutsche mark, French francs, Italian lire, Netherlands guilders, Norwegian kroner, Portuguese escudos, pounds sterling, and Swedish kronor.

As at February 16, 1959, these were listed as Bulgaria, Czechoslovakia, Greece, Hungary, Poland, Rumania, Spanish Monetary Area, Turkey, United Arab Republic (Egyptian Region), and Yugoslavia.

These are East Germany and East Berlin, Iran, and Uruguay.

The control of payments was also abolished for Argentina and Austria on January 5, 1959 and for Finland on February 16, 1959.

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