Chapter

Surveys of Exchange Controls and Restrictions In

Author(s):
International Monetary Fund. External Relations Dept.
Published Date:
September 1953
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Argentina

Origin and Essential Features

Exchange restrictions were introduced in Argentina in October 1931. Subsequently, they were relaxed gradually but then reimposed in November 1946 and intensified during the following years. The last major revision was made on August 28, 1950. The multiple exchange rate system has been simplified gradually in recent years, but during 1952 additional buying rates were introduced for certain exchange proceeds.

Restrictions are exercised through licenses for all imports, individual import quotas for some goods, licenses for nontrade payments, and a multiple exchange rate structure of six effective buying rates and three selling rates. Some exports are controlled, with requirements of the domestic market being taken into account.

Exchange Rate System

The basic official rates, both buying and selling, are Argentine Pesos 5.00 per US$1. Since August 29, 1950, the exchange rate system has consisted of two fixed rates, M$N 5.00 and M$N 7.50 per US$1, and a, fluctuating free market rate. Beginning in February 1952, however, a gradual shifting of export transactions to more advantageous rates for exporters has been taking place, and a new fixed rate of M$N 6.25 per US$1 and two “mixing” rates have been introduced (see Table of Exchange Rates, below).

Administration of Control

The administration of exchange control is exercised by the Central Bank of Argentina in cooperation with the government trade authorities and through authorized banks. The Central Bank regulates virtually all transactions affecting the international financial position of the country. The fixed exchange rates are determined by the Central Bank, which also influences the fluctuating free market rate.

Prescription of Currency

As a general principle, payments must be made or received in accordance with the terms of Argentina’s payments agreements with other countries and monetary areas, and as prescribed in the exchange control regulations.

Imports and Import Payments

All imports require an exchange license which also serves as authority to import and to obtain the necessary exchange in payment. These licenses are granted according to the origin and the category of import, usually on the basis of over-all quotas. Individual import quotas are established for certain essential goods. A 20 per cent penalty is payable on the unused portion of such licenses. There are four types of exchange licenses:

1. Exchange licenses carrying immediate right to official exchange. These are issued only for the importation of items considered most essential to the Argentine economy. Holders of such licenses are entitled to purchase the necessary foreign exchange from the Central Bank or an authorized bank at a rate determined by the exchange rate classification of the import.

2. Exchange licenses carrying no right to official exchange. Licenses “without use of exchange” are issued with the understanding that applicants have private funds abroad with which to make the payment, or that the goods to be imported are considered an investment of foreign capital in Argentina. Reimbursement of capital imported under this type of arrangement is to be made via the free market when and if the Argentine exchange position permits.

3. Exchange licenses for “open account” imports. Such licenses are issued with the understanding that payment is to be effected via the free market when and if exchange conditions permit.

4. Exchange licenses for imports effected on a deferred payment basis. These licenses are approved with the understanding that importers will arrange for extended credit terms from their suppliers abroad and will be entitled to claim official exchange only when these obligations fall due. For machinery and equipment, payment in full may not be completed in less than five years, the first installment becoming due one year after customs clearance of the last shipment chargeable to the exchange license. For raw materials and certain other goods, payment in full may not be effected in less than three years, the first installment falling due one year after customs clearance of any shipment chargeable to the exchange license and the two remaining installments falling due at intervals of one year thereafter.

Preferred imports, such as fuel oils, coal, and coke, are effected at the M$N 5.00 rate. Essential imports (foodstuffs, steel, tobacco, industrial materials, metal products, pharmaceuticals, surgical instruments, etc.) are effected at the M$N 7.50 rate. Nonessential and luxury imports (auto and watch parts, motorcycles, etc.) are effected at the free market rate.

Payments for Invisibles

Payments abroad require licenses and are effected at the free market rate. Earnings on registered foreign capital up to 5 per cent per annum may be remitted through the free market. Interest earnings on foreign loans in dollars or sterling up to 8 per cent per annum may be remitted at the free market rate. Travelers may take out freely small amounts of Argentine and foreign banknotes, but larger amounts require approval.

Exports and Export Proceeds

Some exports are controlled in order to take into account the requirements of the domestic market. Exchange proceeds of exports must be received in the appropriate currencies and surrendered. Exporters must receive the foreign exchange proceeds of their exports in the form of a payment order or an irrevocable letter of credit payable in Buenos Aires against shipping documents at a time which is at least five working days before shipment. Proceeds of basic exports (grains, fresh and frozen meats, hides, mineral products, etc.) must be surrendered at the M$N 5.00 rate, except for the proceeds of wool and raw sheepskins paid for in dollars or sterling, which must be surrendered at the M$N 6.25 rate. Proceeds of certain minor exports (some processed meats, tanned leather, designated manufactures, etc.) must be surrendered at the M$N 7.50 rate. Sixty per cent of the export proceeds of cheese, butter, casein, and quebracho and urunday extracts must be surrendered at the M$N 7.50 rate, and 40 per cent can be sold in the free market. Fifty per cent of the export proceeds of salted or cured beef must be surrendered at the M$N 7.50 rate, and 50 per cent can be sold in the free market. Proceeds of marginal exports (preserved fruits, eggs, woolen and leather manufactures, crushed bone and bone meal, etc., and some processed meats) are sold in the free market.

Proceeds from Invisibles

Exchange receipts from invisibles may be sold in the free market. Travelers may bring in freely small amounts of Argentine and foreign banknotes, but larger amounts require approval.

Capital

Exchange receipts derived from incoming capital may be sold in the free market. Private banks may obtain loans in dollars or sterling for minimum periods of 180 days without special authorization from the Central Bank, provided the exchange is transferred from abroad.

Outgoing transfers of capital require approval of the Central Bank. Loans in dollars or sterling may be retransferred at the free market rate on the date of the initial loan or of its renewal, without special authorization from the Central Bank. Investments abroad by residents are not normally approved.

Table of Exchange Rates(as at December 31, 1952)
(pesos per U.S. dollar)
BuyingSelling
5.005.00
Basic exports (grains, fresh and frozen meats, hides, mineral products, etc.), and wool and raw sheepskin exports paid for in currencies other than U.S. dollars or sterling.Preferred imports (coal, coke, fuel oil, and crude petroleum).
6.25
Wool and raw sheepskin exports paid for in U.S. dollars or sterling.
7.507.50
Minor exports (some processed meats, tanned leather, designated manufactures, etc.).Essential imports.
10.08(60% at M$N 7.50 and 40% at Free Market Rate)
Minor exports (cheese, butter, casein, quebracho and urunday extracts).
10.73(50% at M$N 7.50 and 50% at Free Market Rate)
Minor exports (salted and cured beef).
13.95(Fluctuating Free Market Rate)13.95(Fluctuating Free Market Rate)
Marginal exports (preserved fruits, eggs, woolen and leather manufactures, crushed bone and bone meal, etc., and some processed meats). Invisibles. Capital.Nonessential and luxury imports. Invisibles. Capital.

Changes during 1952

January 10

The system of granting exchange licenses automatically for certain essential imports was suspended.

January 21

Goods could be exported only when the exporter had received the foreign exchange proceeds in the form of a payment order or an irrevocable letter of credit payable in Buenos Aires against shipping documents.

February 20

Exchange receipts derived from cheese, butter, and casein exports previously surrendered 100 per cent at the rate of M$N 7.50 per US$1 were now surrenderable 60 per cent at the M$N 7.50 rate and 40 per cent at the free market rate.

February 27

The buying rate for exchange receipts derived from frozen cooked beef exports was changed from M$N 5.00 to M$N 7.50.

June 11

No documentary letters of credit could be opened without special authorization from the Central Bank unless the documentary credits were covered by exchange licenses marked “without use of exchange” or by exchange licenses for imports effected on a deferred payments basis.

July 21

Exchange receipts in U.S. dollars or sterling derived from wool exports previously surrendered 100 per cent at M$N 5.00 per US$1 were now surrenderable 50 per cent at the M$N 5.00 rate and 50 per cent at the M$N 7.50 rate.

July 23

The validity of issued exchange licenses was in future restricted to licenses for imports for which commercial credits are opened. This order did not apply to exchange licenses “without use of exchange” or exchange licenses for imports effected on a deferred payments basis.

August

Exports of greasy or washed wool to Bolivia, Brazil, Chile, Paraguay, Peru, and Uruguay, and to countries outside the Western Hemisphere with which Argentina has not concluded payments agreements had to be paid for in U.S. dollars or in Argentine account sterling. Exports to other countries in the Western Hemisphere had to be paid for in U.S. dollars. Exports to countries with which Argentina has concluded payments agreements could be paid for also in the currency provided for in the agreement. The M$N 6.25 rate was applied to payments in dollars or sterling, the M$N 5.00 rate to payments in other currencies.

September 2 and 9

The buying rate for exchange receipts derived from exports of processed meats and meat products was changed from M$N 7.50 to the free market rate. The buying rate for exchange receipts derived from exports of crushed bone and bone meal was changed from M$N 7.50 to the free market rate.

September 15

The buying rate for exchange receipts derived from exports of salted or cured beef was changed from 100 per cent at M$N 7.50 to 50 per cent at M$N 7.50 and 50 per cent at the free market rate.

October 8

Private banks could obtain loans in dollars or sterling for minimum periods of 180 days without special authorization from the Central Bank, provided the exchange is transferred from abroad. When the owners of the funds are domiciled abroad, the interest on these loans may be transferred at rates ranging from 6 per cent annually for a loan of 180 days to 8 per cent annually for a loan of 900 days. The loans may be retransferred abroad. The rate of exchange for the initial import of foreign funds, for withdrawals, and for remittances of interest is that ruling in the free market on the day of the initial operation or of its renewal.

October 20

The buying rate for exchange receipts derived from exports of quebracho and urunday extracts was changed from 100 per cent at M$N 7.50 to 60 per cent at M$N 7.50 and 40 per cent at the free market rate.

November 25

The buying rate for dollar or sterling proceeds derived from exports of raw sheepskins was changed from M$N 5.00 to M$N 6.25.

Indonesia

Origin and Essential Features

Exchange controls were introduced into Indonesia on May 10, 1940. Since then they have been changed considerably. Restrictions are exercised through licensing and restrictions on imports. In the case of dollar imports and exports, there is a small premium on the official dollar exchange rates. Payments for invisibles are limited to some extent. The currency and method of payment are prescribed for each transaction. Exports are subject to license, and all foreign exchange proceeds must be surrendered.

Exchange Rate System

The middle rate for the Indonesian Rupiah is Rp 11.40 per US$1, the official rates being Rp 11.355 buying, Rp 11.445 selling, per US$1. In the case of commercial U.S. dollar transactions, exporters and importers receive or have to pay a premium in addition to the official rates. This premium is inherent to the use of dollar export certificates. These certificates are not negotiable and, actually, they are no longer issued since the moment of their use has been synchronized with dollar export and import payments which are effected through authorized banks at fixed rates.

The local currency equivalent of a dollar export certificate is paid to sellers of dollars (both Canadian and United States) to the extent of 70 per cent of the proceeds of exports surrendered at the applicable rate; this rate is fixed weekly by the Javasche Bank in agreement with the Foreign Exchange Institute, but it has remained unchanged, at Rp 0.25 per US$1, since August 26, 1952. The equivalent of 100 per cent at this rate has to be paid to an authorized bank by those authorized to make dollar payments for imports and related expenses. Exceptions are made for imports of a special nature (e.g., rice and flour), those made under MSA arrangements, and exchange transactions which are in the nature of reversals of previous transactions, e.g., refunds, when the original rate applies. These certificates are nominally expressed in U.S. dollars. If the demand for these certificates should exceed the supply, they are freely supplied by the Foreign Exchange Institute to the authorized banks against payment in local currency.

The Foreign Exchange Institute collects a fee of ¾ per cent and a statistical tax of ¼ per cent on all imports and exports.

Administration of Control

Exchange control is administered by the Foreign Exchange Institute on whose behalf combined import and exchange licenses are issued by a Central Bureau of Imports. Control is actually managed by the Javasche Bank and the commercial banks authorized for this purpose.

Prescription of Currency

Payments and receipts must be effected through the authorized exchange banks and in the currency stipulated on the license. Payments to and from OEEC countries can be settled in Netherlands guilders through Indonesia’s account with the Netherlands Bank. Payments to and receipts from South American countries are also settled largely through that same account. By arrangements with the governments concerned, Indonesia obtains reimbursement of foreign exchange from the Netherlands for Indonesian goods re-exported through the Netherlands and from Singapore and Malaya for Indonesian goods re-exported to the dollar area.

Nonresident Accounts

There are two classes of nonresident accounts:

  • Accounts of foreign banks. These are freely convertible into the currency of the country of the operating bank, and the balances may be freely transferred to accounts of nonresident banks of the same monetary area.

  • All other nonresident accounts. The opening of these accounts and all entries require permission from the Foreign Exchange Institute. For nonresident accounts of private persons, the authorized exchange banks have been given permission to make routine personal payments in Indonesia and yearly transfers up to a maximum of Rp 15,000 in the currency of the nonresident out of his current income. These accounts are designated as Capital and Income accounts, respectively, transfers from the former to the latter requiring approval.

Imports and Import Payments

A provisional import license is first issued by the Central Import Regulation Office on behalf of the Foreign Exchange Institute. Before this provisional document can be transformed into final form, i.e., a combined import and exchange license, the importer must obtain a statement from an authorized bank showing that an advance payment of 40 per cent1 of the rupiah equivalent at the official selling rate of exchange has been paid to the Foreign Exchange Fund and that, where “inducement” certificates—so called because originally they were given as inducements to exporters of certain marginal exports2—are required, the importer has already deposited their value. The combined import-exchange license enables the import to be effected and the foreign exchange specified on the license (see section on Prescription of Currency, above) to be obtained from an authorized exchange bank.

For import licensing purposes, four lists of articles are issued. Group A contains essential goods which may be imported without restriction as to amount; Group B, items of a less essential character which may also be imported without limitation as to amount, but on which a sales tax is levied by means of “inducement” certificates covering 100 per cent of the value of the import;3 Group C contains only a few items of a semi-luxury character which may also be imported without limitation as to amount, but “inducement” certificates covering 200 per cent of the value of the goods are required; Group D contains items for which no official exchange is provided, so that their import is confined largely to resident foreign nationals who are permitted to retain nontrade exchange holdings in their own currency; it is, however, necessary to provide “inducement” certificates covering 200 per cent of the value of such imports.

Payments for Invisibles

Most payments for invisibles are subject to a special license from the Foreign Exchange Institute, although for items which represent the current income of individuals abroad, and for such items as rents, dividends, etc., foreign exchange is freely granted up to certain limits in accordance with general licenses issued by the Foreign Exchange Institute to the authorized banks. To foreign nationals resident in Indonesia, foreign exchange is supplied, up to certain limits, for private remittances, such as the maintenance of families abroad, children’s educational expenses, the remittance of savings, and the transfer of capital after the owner’s repatriation. For remittances in respect of profits, dividends on direct investments, insurance, etc., general regulations have been issued by the Foreign Exchange Institute. For such items as advertising, film rentals, charitable remittances, legacies, etc., exchange is granted at the discretion of the Foreign Exchange Institute, on individual application. Authorized payments for nontrade invisibles are effected at the official rate. The export of Indonesian and foreign banknotes and coin is prohibited, but residents going abroad are provided with small amounts of foreign banknotes to meet traveling expenses.

Exports and Export Proceeds

All exports require licenses. Exporters (with the exception of the oil companies, to which special arrangements apply) are required to surrender to an authorized bank in Indonesia all foreign exchange to which they are entitled. Exports must, as a rule, be financed by irrevocable bank credits, and the drafts drawn on such credits must be sight drafts or short-term drafts. Exports may not be invoiced in rupiah, but must be invoiced in a currency acceptable to the Bureau for Exports. There are no general limitations as to the destination of exports, but the Bureau for Exports may withhold licenses for certain exports if, for example, the shipment should not conform with existing trade agreements. Those surrendering U.S. or Canadian dollars benefit from the dollar export certificate premium on 70 per cent of the amount surrendered (see section on Exchange Rate System, above).

Proceeds from Invisibles

Residents are required to surrender to an authorized bank in Indonesia all foreign exchange to which they become entitled. Foreign nationals resident in Indonesia may retain any income in the currency of the country of their nationality, provided the income does not arise from foreign trade. The import of Indonesian banknotes and coin is prohibited. Foreign banknotes and coin may be imported on the condition that they are surrendered to the Javasche Bank at the official buying rate. Visitors staying in Indonesia no longer than three months may have their foreign currency returned to them when they leave, insofar as it has not been sold to the Javasche Bank already. After three months, the visitor intending to re-export his foreign currency has to apply for a special license.

Capital

Residents are required to surrender exchange from capital, and approval is not normally given for capital payments abroad. There are no limitations on nonresidents remitting into Indonesia capital, which, if it were in the form of foreign exchange, would have to be surrendered in accordance with the regulations. The repatriation of capital on behalf of nonresidents is subject to individual consideration by the Indonesian authorities.

Table of Exchange Rates(as at December 31, 1952)
(rupiah per U.S. dollar)
BuyingSelling
11.355(Official Rate)11.445(Official Rate)
Non-dollar exports and related expenses. All other invisibles and capital.Non-dollar imports and related expenses. A few essential dollar imports. Authorized invisibles and capital.
11.53(Official Rate plus 70% at Dollar Export Certificate Rate)11.695(Official Rate plus Dollar Export Certificate Rate)
Dollar exports and related expenses.Other dollar imports and related expenses.
Note : Additional import levies (“inducement” certificates) amounting to 100% or 200% (according to the nature of the goods) of the import value are payable on certain imports. For changes effective January 23, 1953, see footnotes 2 and 3.

Changes during 1952

February 4

The official rate was changed from Rp 3.80 to Rp 11.40 per US$1. Export certificates were created, applicable only to dollar transactions, and were negotiable, the market rate then being ground Rp 1.50 per US$1. Imports of less essential goods required an “inducement” certificate to be purchased at a price fixed at 70 per cent of the official selling price of the exchange required. To counteract windfall profits accruing to exporters under these new arrangements, additional export duties of 25 per cent were imposed on rubber and copra and of 15 per cent on palm oil, tea, oil, palm kernels, pepper, and coffee.

May 12

The price of the dollar export certificates was fixed at Rp 1.20.

June 1

The additional export duty on rubber was reduced from 25 per cent to 15 per cent until September 30, 1952.

June 8

A list was published of luxury goods for which no more foreign exchange would be made available.

The price of dollar export certificates was lowered to Rp 1.00.

June 16

The price of dollar export certificates was lowered to Rp 0.80.

June 25

The price of dollar export certificates was lowered to Rp 0.70.

July 14

The price of dollar export certificates was lowered to Rp 0.60.

August 1

The additional export duties (see February 4, above) were reduced as follows: rubber, from 15 per cent to 10 per cent; copra, from 25 per cent to 15 per cent;4 palm oil and kernels, from 15 per cent to 5 per cent.

August 12

Import goods were listed in four categories: essential, less essential, semi-luxury, and luxury. For less essential imports, the levy of 70 per cent (“inducement” certificate requirement) was increased to 100 per cent. For the levy on semi-luxuries, a new rate was introduced representing 200 per cent on the official exchange rate. No official exchange was provided for the listed luxury goods.

August 18

The price of dollar export certificates was lowered to Rp 0.40.

August 25

The price of dollar export certificates was lowered to Rp 0.25.

August 29

Advance deposits were required from all potential importers before a final import-exchange license would be issued: 40 per cent of the rupiah equivalent of the exchange required, plus the total value of any “inducement” certificates required, i.e., for less essential and semi-luxury items.

September 1

The issuance of licenses by the Central Bureau of Imports was changed from a c.i.f.i.c. to an f.o.b. basis.

October 11

The regulations regarding nonresident accounts (other than those of banks) were recodified.

October 27

The basic official rates were adjusted from Rp 11.37 to Rp 11.355 buying, and from Rp 11.43 to Rp 11.445 selling, per US$1.

Israel

Origin and Essential Features

Foreign exchange regulations were made effective by the Mandatory Government in 1939. When Israel became an independent state in 1948, exchange control was continued. The exchange rate structure was considerably revised on February 14, 1952 by the establishment of three fixed official rates.

The exchange system comprises import restrictions, with exchange licensing applied to all trade and nontrade payments, and a multiple currency practice consisting of three fixed rates applied to different specified transactions. All exports require licenses, and foreign exchange receipts, with certain exceptions, must be surrendered.

Exchange Rate System

The official rate of exchange is Israeli Pound 1 = US$2.80. A second rate of exchange has been fixed at I£l = US$1.40, and a third rate of exchange at I£l = US$1.00. Each rate is applicable to specified transactions (see Table of Exchange Rates, below).

Administration of Control

Exchange control is exercised by the Exchange Control Department of the Treasury under the responsibility of the Controller of Foreign Exchange in cooperation with other government agencies and banks authorized for this purpose.,

Prescription of Currency

Payments and receipts must be made in the currency and manner prescribed by the exchange control authorities. Payments with countries with which payments agreements are in force are usually settled in U.S. dollars, Israeli pounds, or the currency of the partner country.

Imports and Import Payments

All imports require licenses. Certain of these licenses are issued on the understanding that no official exchange will be granted in payment of the import. In respect of other licenses, exchange is automatically granted. Payments for a few specified highly essential imports (Schedule C) are effected at the $2.80 rate; payments for certain other essential imports (Schedule D) are effected at the $1.40 rate; and payments for all other authorized imports are effected at the $1.00 rate.

Payments for Invisibles

Payments abroad require licenses. Most authorized payments are made at the $1.00 rate. The annual transfer of profits, interest, and repayment of loans to a maximum of 10 per cent of invested capital approved under Clause 21 of the Law for the Encouragement of Foreign Investments (1950) is allowed. The exportation of Israeli currency is prohibited.

Exports and Export Proceeds

All exports require licenses. Exchange proceeds in “designated” currencies,1 with certain exceptions, must be surrendered. Certain specified exports (Schedule B) must be surrendered at the $1.40 rate. All other export proceeds are surrendered at the $1.00 rate.2

Proceeds from Invisibles

Exchange proceeds from insurance, maintenance payments, personal gifts, legacies, commissions, income from investments abroad, tourists, and diplomatic expenditures are surrendered at the $1.00 rate. Exchange proceeds from contributions by organizations must be surrendered at the $1.40 rate, and from all other invisibles, at the $2.80 rate. Tourists visiting Israel are expected to bring with them the amounts of foreign currency that they will need during their stay. Special Tourist Letters of Credit can be acquired at points of arrival against foreign currency. Unspent balances of such Letters of Credit can be reconverted into the original foreign currency at points of departure. Declared foreign currency can be taken out. The importation of Israeli currency is prohibited.

Capital

Outward transfers of capital are usually not approved. The investment of foreign capital under the terms of the Law for the Encouragement of Foreign Investments (1950) requires approval if the investor wishes to benefit from the facilities granted by the Law. Foreign capital approved under Clause 21 of the Law is surrendered at the $1.00 rate. The investment of foreign capital in securities, mortgages, real estate, etc., is entirely free. The investment of foreign capital is not subject to approval if the investors do not intend to request the application of the above Law, in which case the sale of exchange takes place at the $1.00 rate or such other rate as may be agreed on. The rate of exchange for proceeds of government loans and grants may be $2.80, $1.40, or $1.00, according to the conditions agreed on.

Table of Exchange Rates(as at December 31, 1952)
(U.S. dollars per Israeli pound)
BuyingSelling
2.802.80
Government loans and grants designated for sale at this rate. All transactions not made at the other rates.Schedule C imports (essential foods).4
1.401.40
Appeals and contributions. Schedule B exports.3 Government loans and grants designated for sale at this rate.Schedule D imports (less essential goods).4
1.001.00
Exports other than those in Schedule B.3 Tourists and diplomatic. Life insurance. Investment approved under Clause 21 of the Law for the Encouragement of Foreign Investment (1950). Government loans and grants designated for sale at this rate. Income from investments abroad. Individuals’ receipts of maintenance, gifts, and legacies. Commissions and fees.All other transactions, including income derived from approved investments.

Changes during 1952

February 14

Three fixed, official exchange rates became effective and the transactions and commodities to which each rate applied were specified.

June 13

The import into Israel of Israeli currency was prohibited.

October 26

Purchases of foreign exchange from tourists and diplomats were permitted at the $1.00 rate, instead of the previously applied $1.40 rate. Rebates hitherto given to tourists paying with Tourist Letters of Credit acquired by the sale of foreign currency were withdrawn, except for the rebate of 15 per cent for purchases made in “Tourist Shops.”

New Zealand

Origin and Essential Features

Exchange control was first introduced in New Zealand on December 7, 1938. In April 1940 the exchange control system was augmented by the issuance of Finance Emergency Regulations, which were expanded and revised in June 1940. In March 1950 control over Sterling Area currency and securities held by New Zealand residents was abolished, and on August 1, 1950 the trading banks were authorized to make remittances in respect of imports without reference to the’ exchange, control authorities. In 1951 and 1952 there were considerable changes in the regulations affecting imports, mainly by rationing exchange to importers on the basis of their 1950 imports. The restrictive system in New Zealand is exercised through import licensing applied to goods imported from hard currency countries and a few others, and to motor vehicles from all sources, and through exchange licensing applied to payments for all other transactions, including imports from soft currency countries.

Exchange Rate System

The official rates for the New Zealand pound in terms of non-sterling currency are based on the fixed rates for sterling/New Zealand pounds and the U.S. dollar/sterling rate in the London market maintained between the official limits. As at December 31, 1952, the trading banks’ rates for telegraphic transfers on London were £NZ 100/7/6 buying, £NZ 101 selling, per £100, and for U.S. dollars, US$2,802 buying, US$2.7695 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 New Zealand trading (commercial) banks.

Prescription of Currency

New Zealand, as one of the territories of the Sterling Area, conforms to the prescription of currency arrangements and the exchange payments system of the United Kingdom (see United Kingdom, section on Prescription of Currency).

Imports and Import Payments

Imports from “scheduled” countries 1 and imports of motor vehicles from all countries require import licenses. In respect of these licenses, exchange is automatically made available by the authorized banks. Certain goods from other, i.e., nonscheduled, countries also require import licenses which are issued on the basis that they carry no assurance that exchange will be provided. The allocation of exchange in payment of most imports (regardless of whether or not an import license is required) is subject to a system of exchange rationing by which the trading banks may not, without the approval of the Reserve Bank, sell to any importer during 1952 more than 80 per cent of the amount of exchange sold in 1950 to that same importer.2 In addition to these limitations, payments can be made only in the manner prescribed in the regulations (see section on Prescription of Currency, above).

Payments for Invisibles

Payments for invisibles require the approval of the Reserve Bank. In general, contractual payments are approved without limitation. Payments to other territories of the Sterling Area are not restricted, except for capital exports by New Zealand residents, travel allowances, and a few minor items. Noncontractual remittances to countries outside the Sterling Area are treated on their merits, very 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 the transaction is being cleared through a trading bank through which the net export proceeds will be received in a manner conforming to the regulations (see section on Prescription of Currency, above) and foreign exchange surrendered (other than Sterling Area currencies).

Proceeds from Invisibles

All receipts of non-Sterling Area currencies have to be sold to a bank in New Zealand. No control is exercised over the disposal of Sterling Area currency receipts other than from exports.

Capital

Transactions in non-sterling securities owned by New Zealand residents require the prior permission of the Reserve Bank. Capital remittances to non-Sterling Area countries are not normally approved. Capital receipts in non-Sterling Area currencies must be surrendered or declared to the Reserve Bank. No control is exercised over the disposal of receipts in Sterling Area currencies.

Changes during 1952

February 4

The sterling exchange allowance for travel to the continent of Europe was reduced from £100 to £50 per adult.

March 11

It was announced that the open general license for imports from the Sterling Area and EPU countries would be suspended; that all licenses to import from Canada, Japan, and the United States would be subject to cancellation and reconsideration; and that imports of motor vehicles from any source would be controlled.

March 31

It was announced that the trading banks had been advised not to sell to any importer during 1952, except with approval of the Reserve Bank, more than 80 per cent of the exchange sold to that importer during 1950.

June 6

August 4

Certain commodities were listed as being exempt from import licensing if imported from soft currency countries.

August 5

The percentage of 1950 exchange which the trading banks could sell to importers for 1953 imports was announced as 40 per cent, compared with 80 per cent for 1952 (see March 31, above).

Portugal

Origin and Essential Features

Exchange controls were introduced in Portugal on September 24, 1914 and revoked on October 18, 1937. During World War II and until 1947, a few controls were maintained—in most cases imposed by the terms of bilateral payments agreements. In the summer of 1947, controls were re-established to the effect that any transaction in sterling or dollars had to be directly related to the Portuguese Monetary Area and the Sterling or Dollar Area, respectively. By the late summer of 1947, an increased number of goods was subjected to import licensing restrictions. On February 9, 1948, general registration of imports and exports was introduced. Subsequently, imports from the dollar area or payable in hard currencies were subject to increasing restrictions, while imports from EPU countries, or payable in EPU currencies, were liberalized.

The exchange rate system is uniform. Settlements on account of merchandise transactions and invisibles are effected in a currency and manner prescribed by the provisions of bilateral trade and payments agreements or determined on the basis of the country of origin or destination of goods and services involved. All imports are subject to a previous registration. Some imports from EPU countries and their overseas territories and most imports from all other countries are subject to individual licensing; payments to EPU countries on account of many categories of invisibles are freely permitted.

All exports are subject to a registration requirement. Certain exports to any country and all exports to other than EPU countries payable in a currency of any EPU country are subject to individual licensing. Export proceeds as well as exchange receipts from invisibles must be surrendered. A specified percentage of proceeds accruing from specified exports to EPU countries is temporarily blocked.

Transfers of capital require approval; however, such transfers to countries with which Portugal has payments agreements are permitted within the terms of the related agreement. Exchange receipts from capital must be surrendered.

Exchange Rate System

The parity of the escudo in terms of the U.S. dollar is Esc 28.75215 = US$1. Official rates are Esc 28.60 buying, Esc 28.95 selling, per US$1. Exchange rates are uniform.

Exchange Control Territory

Portugal and Portuguese overseas territories1 constitute a single exchange control territory, the “Portuguese Monetary Area”; between the components of this area, exchange control restrictions practically do not exist. The exchange control regulations of Portugal are applied almost uniformly throughout the Portuguese Monetary Area, current payments between its various territories being effected through controlled accounts.

Administration of Control

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

Prescription of Currency

Settlements on account of merchandise transactions and invisibles are effected in a currency and in a manner prescribed by the provisions of bilateral trade and payments agreements or determined on the basis of the country of origin or the destination of the goods or services involved. Any deviation from the general regulations in this matter requires the approval of the Bank of Portugal.

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 EPU countries and their overseas territories,2 imports from other than EPU countries payable in a currency of any EPU country, and most imports from other countries are subject to individual licenses which are issued with the registration form. Most goods of a value less than Esc 2,500 may be freely imported from EPU countries and their associated territories. Appropriate exchange is automatically granted for authorized imports.

Payments for Invisibles

All payments on account of invisibles in foreign currency or by crediting nonresident accounts in excess of Esc 2,500 are subject to individual licensing. For lesser amounts, such payments are made if the applicant undertakes to produce documentary evidence of the obligation, should proof be required later. Payments to countries with which Portugal has payments agreements are freely permitted within the terms of the related agreement. Payments in favor of persons residing in any of the EPU countries are freely permitted on account of costs incidental to exports and imports without any limitation as to amount, and up to Esc 100,000 on account of various 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 secure the enforcement of the prescription of currency and surrender obligation regulations. Certain exports to any country and all exports to other than EPU countries payable in the currency of an EPU country are subject to individual licensing. Export proceeds have to be surrendered. Thirty per cent of proceeds accruing from specified exports (above the value of Esc 2,500) paid in the currency of an EPU country or in escudos by debiting the escudo account of a person domiciled in an EPU country, as well as 30 per cent of proceeds from specified exports to Austria, the Federal Republic of Germany, Greece, Italy, and Turkey expressed in any third currency and to Switzerland if paid to the account of the Bank of Portugal with the National Bank of Switzerland, are blocked. Their deblocking is effected as soon as Portugal’s favorable balance toward EPU falls below a specified limit.

Proceeds from Invisibles

Payments on account of invisibles due from persons residing in EPU countries can be freely received by Portuguese residents on account of costs incidental to exports and imports without any limitation as to 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 freely permitted within the terms of the related agreement. Other capital transfers require approval. Exchange receipts from capital must be surrendered.

Changes during 1952

January 15

Imports from EPU countries were entirely liberalized.

February 3

Licensing of imports from the dollar area was temporarily restricted in order to stimulate imports from EPU countries.

February 11

Payments to and from EPU countries on account of many categories of invisibles, in most cases up to a limit of Esc 100,000, were freely permitted.

February 26

Thirty per cent of proceeds accruing from specified exports (above the value of Esc 2,500) paid in the currency of an EPU country or in escudos by debiting the escudo account of a person domiciled in an EPU country, as well as 30 per cent of proceeds from specified exports to Austria, the Federal Republic of Germany, Greece, Italy, and Turkey expressed in any third currency, and to Switzerland if paid to the account of the Bank of Portugal with the National Bank of Switzerland, were subject to blocking. These proceeds were to be freed as soon as Portugal’s credit position in EPU falls below a specified level. The Council of Ministers was authorized to exempt specified exports from the blocking requirements.

March 17

A list of goods, the export proceeds of which were subject to blocking requirements, was published. Changes in the list were made on May 2, May 27, June 19, September 6, October 2, and November 4, 1952.

May 1

The liberalization of imports from EPU countries was applied on the basis of 75 per cent of 1948 import values. Previously, all imports from EPU countries had been free.

Spain

Origin and Essential Features

Controls were introduced in Spain on May 31, 1931; since then they have been continuously applied, with various modifications. On December 3, 1948 a system of multiple exchange rates based on categories of merchandise was established. By a decree of July 21, 1950, a “free” exchange market was introduced for specified currencies. The system was revised November 1, 1951; since then payments on account of merchandise have been effected at either “free” market or fixed rates or various percentage, combinations of these; this multiple exchange rate system comprises altogether seven effective buying rates and seven effective selling rates (see Table of Exchange Rates, below).

All imports and payments for invisibles are subject to individual licensing. All exports are subject to individual licensing, and exchange proceeds have to be surrendered. Foreign capital transactions also are subject to license.

Exchange Rate System

The official basic rates are Pesetas 10.95 buying, Pesetas 11.22 selling,1 per US$1. The use of these rates is limited to government transactions. For other purposes, there is an official buying rate of Pts 21.90 per US$1 and three official selling rates, Pts 16.425, Pts 21.90, and Pts 25.00 per US$1. Other effective rates are produced by combining certain percentages at one of these rates with the balance at a “free” official market rate, currently Pts 39.65 per US$1 (see Table of Exchange Rates, below).

Only authorized banks are permitted to operate on the “free” market, acting as intermediaries between buyers (who require permits from the Spanish Foreign Exchange Institute) and sellers of specified currencies.2 As the demand and supply of “free” currencies are subject to the control exercised by the authorities over exchange transactions, the formation of “free” market rates is affected by the decisions of the Spanish trade and exchange control authorities and the intervention of the latter in the exchange market.

Exchange Control Territory

The Peninsular Territories of the Spanish State, the Canary Islands, the Balearic Islands, Ceuta, Melilla, Spanish Zone of Morocco, and the Spanish colonies constitute a single exchange control territory, the “Spanish Monetary Area.”

Administration of Control

On a policy level, controls are administered by the Ministry of Finance, the Ministry of Commerce, and the Spanish Foreign Exchange Institute; on a technical administrative level, by the Spanish Foreign Exchange Institute, the General Department of Commerce and Tariff Policy in the Ministry of Commerce, and by authorized banks.

Prescription of Currency

Settlements on account of merchandise transactions and invisibles are effected in the currency and in the manner prescribed in the provisions of bilateral trade and payments agreements or determined on the basis of the country of origin or destination of the goods and services involved. The prescription of currency requirements are operated through an individual licensing system to which all categories of exchange payments are subject.

Imports and Import Payments

All imports require import and exchange licenses which are issued in combined form by the Spanish Foreign Exchange Institute after consultation with the General Department of Commerce and Tariff Policy. Foreign exchange is made available for authorized imports through official allocations or the “free” market mechanism. Subject to the approval of the Spanish Foreign Exchange Institute, nonresidents can import essential materials and use the proceeds accruing from their sale for specifically determined expenses and investments in Spain. Specific industries grouped on a national or regional basis are permitted to make imports needed for production of their export goods out of their own retained exchange (see section on Exports and Export Proceeds, below).

Payments for Invisibles

All transfers abroad and payments by residents in favor of nonresidents on account of invisibles are subject to individual licensing. Practically all of them are effected at the “free” market rate. Persons traveling abroad may take with them a maximum of Pts 2,000 in notes of the Bank of Spain.

Exports and Export Proceeds

All exports are subject to individual licenses issued by the General Department of Commerce and Tariff Policy. This requirement is established mainly in order to determine the exchange rate applicable to the proceeds, and to enforce currency prescription and surrender regulations. Proceeds accruing from exports must be surrendered to authorized banks or sold through their intermediary on the “free” exchange market. In accordance with the arrangement called “Special Operations,” specific industries grouped on a national or regional basis are permitted to retain their export proceeds to be used for payment of imported raw materials or other goods needed by them for their own production; in certain cases, special rates for specified exports are determined. There are altogether 11 “Special Operations” arrangements in existence, 7 of which have a regional applicability.

Proceeds from Invisibles

All exchange proceeds must be sold on the “free” market if payable in currencies dealt in on that market, or surrendered to authorized banks if payable in other currencies. The “free” market rates are applicable to the purchase of proceeds accruing from practically all categories of invisibles. Persons may bring in a maximum of Pts 10,000 in notes of the Bank of Spain.

Capital

All outward capital transfers are subject to individual approval. All inward and outward private capital transfers must be effected at the “free” market rates. Special facilities are accorded to investments effected by nonresidents in Spain through the importation of essential goods (see section on Imports and Import Payments, above).

Table of Exchange Rates(as at December 31, 1952)
(pesetas per U.S. dollar)
Buyinggelling
10.95(Official Basic Rate)11.22(Official Basic Rate plus Commission)
….Government payments, including imports of rationed foodstuffs.
16.425
Imports in Group A: coal, coke, and pitch.
21.90(Special Export Rate)21.90
Exports not listed in Groups 1-5.….
23.675(90% at Pts 21.90 and 10% at “Free” Official Market Rate)
Exports in Group 1: chestnuts, cocoa, cork (semimanufactured products), fresh fish, fruit trees, livestock, olives, etc.
25.00
Imports in Group E: liquid fuels and tobacco.
25.715(60% at Pts 16.425 and 40% at “Free” Official Market Rate)
Imports in Group B: aluminum scrap, copper, copper alloys, creosote, ores (metallic), phosphates, metal scrap, seeds, sleepers, tinplate, etc.
27.225(70% at Pts 21.90 and 30% at “Free” Market Rate)
Exports in Group 2: almond oil, apricots, cherries’, cider, cork manufactures, figs, dried fish, gypsum, peaches, pears, plums, potash, vegetables, etc.
29.00(60% at Pts 21.90 and 40% at “Free” Official Market Rate)
Imports in Group C: aluminum, chromium, cobalt, ferroalloys, fertilizers, fibers (hard), fishing lines, threads and nets, insecticides, jute, etc.
30.775(50% at Pts 21.90 and 50% at “Free” Official Market Rate)
Exports in Group 3: almonds, bananas, chemicals, clays and silicates, tanned hides, grapes, lemons, essential oils, onions, oranges, paper, peanuts, tomatoes, etc.
32.55(40% at Pts 21.90 and 60% at “Free” Official Market Rate)
Imports in Group D: raw materials for abrasives, asbestos, asphalt, hemp, lubricants, railway materials. Raw materials for refractories, tar, vaseline, etc.
34.325(30% at Pts 21,90 and 70% at “Free” Official Market Rate)
Exports in Group 4: berets, ceramics and glass, hats, shoes and leather articles, perfumes, vinegar, wine, etc.
37.875(10% at Pts 21.90 and 90% at “Free” Official Market Rate)
Exports in Group 5: books, handmade rugs, wolfram, etc.
39.65(“Free” Official Market Rate)39.65(“Free” Official Market Rate)
Invisibles. Capital.All other imports. Authorized invisibles and capital.
Note: The above rates apply to exchange receipts in the specified currencies.
Note: The above rates apply to exchange receipts in the specified currencies.

Changes during 1952

July 5

Subject to the approval of the Foreign Exchange Institute, nonresidents could use the proceeds accruing from the sale of imported essential materials for specified expenses and investments in Spain.

Switzerland

Origin and Essential Features

In Switzerland there is no over-all control of foreign exchange. However, in practice exchange is controlled in respect of countries with which Switzerland has bilateral agreements or in respect of which Switzerland has enacted autonomous regulations. Since October 14, 1933, a law authorizing the Swiss Federal Council to restrict imports and exports, to conclude payments agreements, and to control payments relating to countries which have restricted their payments constitutes the legal basis of Switzerland’s payments and trade control regulations. While the number of bilateral agreements has gradually increased and now covers Switzerland’s trade and/or payments with 22 countries or monetary areas,1 and while Switzerland has regulated her payments traffic with three other countries,2 payments may freely be made to and accepted from the rest of the world. Though imports of a considerable number of goods are being controlled, import licenses are, with relatively few exceptions, granted without quantitative restriction. Imports from EPU countries are liberalized in accordance with the OEEC code of liberalization. The export and re-export of a number of goods are subject to control.

Exchange Rate System

The Swiss National Bank maintains the U.S. dollar rate in a free market between the limits of Sw fr 4.28 buying, and Sw fr 4.46 selling, per US$1. Since September 1949, the upper limit of the dollar has in practice been Sw fr 4.3728 per US$1, corresponding to the gold parity of the Swiss franc. In accordance with the provisions of several payments agreements, official fixed rates for specified currencies are applied. In a few cases, variable rates are in use ; these rates are based on the exchange rate system of the respective countries.

In December 1952, the gold content of the franc was approved by the Federal Assembly at 63/310 (= 0.203 225 8) grams of fine gold.

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 between Switzerland and the Principality of Liechtenstein of March 29, 1923, 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 and exports and of payments is vested in the Swiss Federal Council acting on the proposals of the Federal Political Department, and, especially, of the Federal Department of Public Economy. 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 with certain countries are prescribed in the sector of controlled payments in accordance with the provisions of the related payments agreements and/or by the Swiss regulations. In all other cases, settlements are not subject to regulations involving the prescription of currency.

Nonresident Accounts

Nonresident accounts established and operated in accordance with the exchange control regulations applicable to the sector of controlled payments are controlled, but other nonresident accounts are free of control.

Imports and Import Payments

A considerable number of goods are admitted into Switzerland on the ground of an import license only; but in accordance with her present liberal import policy, licenses are, generally speaking, granted without quantitative limitation. However, quotas are established for certain agricultural products and, as far as industrial products are concerned, for heavy motor vehicles and agricultural tractors.

Settlements are effected 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 can be freely effected through the free market.

Payments for Invisibles

Payments to countries in the sector of controlled payments are permitted within the terms of the related agreement and/or the Swiss regulations. In all other cases, payments can be freely effected. The importation of Swiss or 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 controlled-payment countries are converted into Swiss currency in observance of the existing regulations. The other export proceeds are freely disposable.

Proceeds from Invisibles

Proceeds accruing from invisibles and originating in controlled-payment countries are converted into Swiss francs in observance of the existing regulations, whereas such proceeds from other countries are freely disposable. The exportation of Swiss and other banknotes is free.

Banknotes

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

Capital

Transfers of capital to countries in the sector of controlled payments are permitted within the terms of the related agreement and the Swiss regulations; however, transfers of capital exceeding Sw fr 500,000 to and from those countries require a license. Transfers to countries in the sector of free payments can be effected without such requirement.

Changes during 1952

June 20

Export controls were extended.

July 1

In addition to other service fees collected under existing payments arrangements with foreign countries, a service charge of one half of one per cent was imposed on all Swiss payments to members of EPU.

Swiss restrictions on the import and export of gold bars and coins were abolished; however, a 4 per cent sales tax was applied on both imports and exports. (In accordance with a regulation of December 25, 1951, the import and export of gold have been subject to an individual permit from the Swiss National Bank.)

December 8

Export controls were further extended.

December 17

The Federal Assembly approved the revision of the coinage law. The gold content of the franc was fixed at 0.203 225 8 or 63/310 grams of fine gold. This confirmed legally the then existing value of the Swiss franc in terms of gold.

December 19

The import and transit of live animals were made subject to control.

Effective April 1, 1953, the percentage of the advance payment was increased to 75.

Effective January 23, 1953, the name “inducement” certificate was replaced by “TPI” certificate (additional import levy) in accordance with the historical development of these certificates, and simultaneously an additional category of merchandise was created for which, such certificates were required for 33-1/3 per cent of the import value.

Effective January 23, 1953, this group was subdivided into B.I and B.II, the former requiring “TPI” certificates for 33-1/3 per cent of the value, and the latter requiring certificates for 100 per cent, as previously.

Effective January 1, 1953, this additional export duty on copra was reduced to 10 per cent.

“Designated” currencies are those of the following countries : Australia, Belgian Congo, Belgium, Brazil, Canada, Czechoslovakia, Denmark, France, Iceland, India, Ireland, Luxembourg, Netherlands, Netherlands West Indies, New Zealand, Norway, Pakistan, Panama, Philippine Republic, Portugal, Sweden, Switzerland, Union of South Africa, United Kingdom, United States, and Uruguay.

Effective February 8, 1953, this rate was applied to the exchange proceeds of all exports made since September 1, 1952.

See footnote 2.

Effective May 1, 1953, Schedules C and D were canceled. Exchange for imports of wheat, hard wheat, wheat flour, sugar, and candy sugar continued to be provided at the $2.80 rate, but exchange for all other imports was provided at the $1.00 rate.

These countries are listed in the New Zealand regulations as follows: Albania, Argentina, Bolivia, Bulgaria, Canada, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, French Somaliland, Germany (Russian Zone), Guatemala, Haiti, Honduras, Hungary, Iran, Japan, Korea, Liberia, Mexico, Nicaragua, Panama, Philippine Republic, Poland, Rumania, Tangier, Uruguay, United States, U.S.S.R., Venezuela, and Yugoslavia.

For 1953 the percentage has been reduced to 40 per cent, as announced August 5, 1952.

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.

These countries are listed as follows: Austria, Belgium, Denmark, France, Federal Republic of Germany, Greece, Iceland, Italy, Ireland, Luxembourg, Netherlands, Norway, Sweden, Switzerland, Trieste, Turkey, United Kingdom, and their overseas territories.

Pts 10.95 plus Pts 0.27 (banking commission of the Spanish Foreign Exchange Institute).

The currencies dealt in on the “free” market are as follows : Belgian francs, Canadian dollars, Danish kroner, French francs, Italian lire, Moroccan francs, Mexican pesos, guilders, Norwegian kroner, escudos, Swedish kronor, Swiss francs, pounds sterling, and U.S. dollars; escudos and Swiss francs in agreement accounts; pounds sterling in the “Iceland” account; U.S. dollars of account with Bolivia, Brazil, Cuba, Finland, Federal Republic of Germany, Greece, Mexico, Italy, Paraguay, and Turkey; and banknotes in bolivares, Colombian pesos, cruzeiros, Deutsche marks, soles, and Uruguayan pesos.

These are listed as Argentina, Austria, Belgian Monetary Area, Bulgaria, Czechoslovakia, Denmark, Egypt, Finland, French Monetary Area, Federal Republic of Germany, Greece, Hungary, Italy, Netherlands Monetary Area, Norway, Poland, Rumania, Spanish Monetary Area, Sweden, Turkey, United Kingdom and other territories of the Sterling Area, and Yugoslavia.

These are Eastern Germany, Iran, and the Portuguese Monetary Area.

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