Chapter

C. Country Surveys

Author(s):
International Monetary Fund. External Relations Dept.
Published Date:
September 1952
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Explanatory Note on Terminology

In the descriptions of exchange controls and restrictions in member countries, a standardized pattern has been followed wherever practicable. This consists of a uniform presentation of the restrictive features of each system, using as far as possible a consistent terminology for describing similar practices. As a result, in many cases, this terminology is not necessarily that employed in the particular country concerned. Furthermore, since the purpose of these country surveys is essentially to describe existing restrictive systems and changes which have taken place during 1951, the terminology is not intended to relate to the member countries’ obligations and responsibilities under the Fund’s Articles of Agreement.1

In the interest of standardization, each country survey is divided into the following sections: Date of Introduction, Nature of Restrictive System, Exchange Rates, Exchange Payments (with subdivisions), Exchange Receipts (with subdivisions), and Changes during 1951. In a few country surveys, additional sections have been included on Exchange Control Territory, Nonresident Accounts, and Foreign Banknotes.

Under Date of Introduction, the dates when exchange controls and restrictions were originally introduced and when last they were significantly revised are cited. These dates serve to indicate the period of the existence of exchange restrictions, without attempting a complete historical review of exchange controls and restrictions.

Under Nature of Restrictive System, the essential features of the restrictive system, particularly those applying to trade and invisibles, are briefly described. Multiple currency practices on the selling and buying sides, where they exist, and requirements concerning export proceeds and export licensing are also mentioned.

Under Exchange Rates, the par value, where one has been agreed with the Fund, is expressed in terms of United States dollars, and the official buying and selling rates, if any, are quoted in most cases in the same manner. General remarks are also made wherever applicable concerning the important features of the exchange rate system. The surveys of member countries with several effective rates of exchange include a more detailed tabulation of these rates and their applicability under the separate section, Table of Exchange Rates, toward the end of the particular survey. The buying and selling rates quoted are those effective as of the end of 1951, unless otherwise noted.

Under Exchange Payments, the restrictions applied to international payments are described. The term “import license” is used to describe individual permits granted by the trade authorities to effect the importation of a given commodity. When it is stated that only certain imports require import licenses, it is to be understood that all other imports are free of restrictions of this type, unless otherwise explained. In various countries, the legislation concerned uses different technical terms, such as “free lists” or “open general licenses,” to describe arrangements whereby imports and other international transactions are exempt from the restrictive application of the licensing requirements. In the interest of uniformity, such arrangements are referred to by the standard expression, “certain imports (or other transactions) are freely permitted.” Differences in restrictions as applied to imports from different countries are indicated, and in several cases additional detail is given in a footnote. Although this is not expressly stated in each case, it is to be understood that payments between those countries or monetary areas having bilateral payments arrangements must be made in accordance with the terms of such arrangements and that this requirement is enforced on the residents of the countries concerned as part of the exchange control system. Where the word “appropriate” is used, in such expressions as “exchange appropriate to the country of the recipient” or “an account appropriate to the country of destination,” it is to be understood that payments or receipts must be in the form prescribed in the exchange control regulations of the country whose system is being surveyed.

The term “exchange license” is used to describe the individual permits granted by the exchange authorities to effect exchange payments. Where exchange payments for invisibles are exempt from individual permits, or can be freely effected by specified categories of residents or in specified currencies without any limitation or up to certain limits, the standard expression “foreign exchange is freely granted up to certain limits” or its appropriate equivalent is used. Differences in national terminology have been avoided.

In relation to capital payments, the term “require approval” is used to express the fact that permits are necessary to effect such payments on behalf of either residents or nonresidents. The term “approval” has a broader meaning than “licenses,” as it may include special conditions connected with the transfer of capital. Where transfers of dividends, interest, and other investment income are very closely connected with transfers of capital, they are discussed in the section on capital, and the expression “registered capital” used in the Tables of Exchange Rates may cover both the amortization of capital and income thereon, to the extent provided for by the capital registration arrangements.

Under Exchange Receipts, special requirements relating to exchange proceeds of exports, invisibles, and capital are described. Where the exchange control regulations include special requirements that the proceeds must be obtained in a prescribed manner, an expression such as “the exchange proceeds of exports must be received in an appropriate currency or from an appropriate nonresident account” is used. The term “surrender” is used to denote the compulsory sale of exchange proceeds at specified rates of exchange against local currency. In some countries, the “surrender” of exchange proceeds is not required, but these proceeds may not be retained indefinitely or used for international payments without specific license. Alternatively, it may be required that certain exchange proceeds be sold in a free market. These cases are specifically mentioned in the country surveys.

Under Exchange Control Territory, the extent of applicability of a given national system of exchange controls and restrictions is explained when it covers two or more sovereign or autonomous territories and when a resident of one country is treated as a resident of another country for the purposes of exchange control.

Under Nonresident Accounts, special arrangements governing payments through the accounts of nonresidents are described where they play an important part in settling payments between nonresidents. In two country surveys, a section on Foreign Banknotes is added to outline special provisions relating to their use in international transactions.

Under Changes during 1951, the more significant changes which took place in the restrictive systems during 1951 are presented in chronological order.

The terms “resident” and “nonresident” have been used throughout the country surveys, even though the regulations of certain countries refer to “exchange nationals” and “exchange foreigners,” or similar designations. In general, countries apply these terms on the basis of the normal domicile or the active place of business of the individual or legal entity concerned, but other criteria, such as nationality and length of residence, may also be taken into account.

Australia

Date of Introduction

August 28, 1939.

Nature of Restrictive System

Restrictions are exercised through licenses required for imports from certain countries1 and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange from exports must be surrendered. Exchange receipts from invisibles and capital in U. S. dollars, or Canadian dollars in banknote or check form, must be surrendered. Practically all exports require licenses.

Exchange Rates

Par value: Australian Pound 1 = US$2.24. There are no official rates for the U.S. dollar. Banks in Australia quote their own U.S. dollar rates, but these are determined by market quotations in New York and London. There are official rates in Australia for pounds sterling: buying £A 125, selling £A 125/10/—per £100. The market rate in Australia for the U.S. dollar on December 31, 1951 was: buying US$2.2240, selling US$2.2198 per £A 1.

Exchange Payments

Payments to other parts of the Sterling Area must be effected in a Sterling Area currency. Payments to outside the Sterling Area must be effected either in the foreign exchange appropriate to the country or monetary area of the recipient, or by crediting the appropriate sterling account of a nonresident of the Sterling Area or the account with an Australian bank of a bank in the country concerned.

Imports. Imports from “hard currency” countries2 require import licenses. Imports from other countries are, in general, free of import license.3 Exchange is automatically granted for authorized imports.

Invisibles. Payments abroad require licenses. Foreign exchange is freely granted for expenses incidental to trade transactions, transfers abroad of dividends, and other earnings due to nonresidents. Foreign exchange for other payments to countries other than “hard currency” countries4 is freely granted up to specified limits.

Capital. Transfers of capital require approval.

Exchange Receipts

Exports. Practically all exports require licenses. The proceeds of exports to other parts of the Sterling Area must be received from a sterling account or in the exchange of the territory of destination or in Australian currency from the account of a bank domiciled in the Sterling Area (except Australia). The proceeds of exports to countries outside the Sterling Area must be received in the foreign exchange appropriate to the country or monetary area related to the destination of the export, in sterling from the appropriate sterling account of a nonresident of the Sterling Area, or in Australian currency from the account of a bank domiciled in the country or monetary area related to the destination of the export. Foreign exchange receipts must be surrendered.

Invisibles. Exchange receipts in U.S. dollars, or Canadian dollars in banknote or check form, must be surrendered. All other exchange may be retained but its disposal requires license. Permission is given for foreign exchange to be retained on controlled accounts where it is required for operating purposes.

Capital. Investments of persons residing outside the Sterling Area must be made in foreign exchange appropriate to their country or sterling from an appropriate account. Exchange receipts from capital in U.S. dollars, or Canadian dollars in banknote or check form, must be surrendered.

Changes during 1951

December 18

The quotation of official rates for the U.S. dollar was discontinued. Banks were free to quote their own U.S. dollar rates, but these would be determined by market quotations in New York and London.

Austria

Date of Introduction

October 9, 1931. Reintroduced after the war, July 25, 1946. The exchange rate system was revised November 25, 1949 and October 5,1950.

Nature of Restrictive System

Restrictions are exercised through licenses required for imports and nontrade payments, and through penalty selling rates for invisibles and capital items; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange must be surrendered. A multiple currency practice results on the buying side from the application of the premium exchange rate to noncommercial invisibles and capital items. Some exports require licenses.

Exchange Rates

No par value for the Schilling. Official commercial rates: buying S 21.23, selling S 21.49 per US$1.1 There are premium rates of buying S 25.87 and selling S 26.13 per US$1 applicable to noncommercial invisibles and capital (see Table of Exchange Rates below).

Exchange Payments

Imports. Most imports require import licenses. Certain imports are freely permitted from EPU countries and their associated territories. Exchange is automatically granted for licensed imports. Payments for those imports free of import license require exchange licenses. All imports are effected at the S 21.49 rate.

Invisibles. All payments abroad require licenses. Foreign exchange authorized for expenses incidental to trade transactions is provided at the S 21.49 rate, and for other purposes at the S 26.13 rate. Travelers may take out a maximum of S 1,000 in Austrian currency.

Capital. Transfers of capital require approval and must be effected at the S 26.13 rate.

Exchange Receipts

Exports. Some exports require licenses. Exchange proceeds from exports must be surrendered at the S 21.23 rate, unless the Exporter has permission to retain a part of them for his own authorized expenses.2 Barter transactions are permitted for certain exports.

Invisibles. Exchange receipts from noncommercial invisibles must be surrendered at the S 25.87 rate; from commercial invisibles at the S 21.23 rate. Persons may bring in a maximum of S 1,000 in Austrian currency.

Capital. The investment of foreign capital requires approval. Exchange receipts from capital must be surrendered.

Table of Exchange Rates (as at December 31, 1951)(schillings per U.S. dollar)
BuyingSelling
21.23Exports and commercial invisibles.21.49 Imports and commercial invisibles.
25.87Noncommercial invisibles and capital.26.13 Noncommercial invisibles and capital.

Changes during 1951

April 4

Two laws were passed respectively establishing an Economic Directorate and reorganizing foreign trade procedure. Under the new arrangements, the lists of goods subject to export and import licensing were revised, and important exports could be effected only against a letter of credit opened by the foreign buyer or against payment to be made within a relatively short period.

December 22

It was announced that the export retention quota system would be abolished as from January 1, 1952.

Belgium-Luxembourg

Date of Introduction

In Belgium, May 10, 1940. During the war, exchange restrictions were separately applied in Belgium and Luxembourg. The present exchange control system was established in 1944 and 1945. In September-December 1951, numerous changes took place in the regulations.

Nature of Restrictive System

Restrictions are exercised through licenses required for imports and for most nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange in certain currencies from commercial transactions must be surrendered. Other exchange proceeds may be retained, but their use is limited. The sale of certain currencies to authorized banks is subject to authorization. Most exports require licenses.

Exchange Rates

Par values: Belgium Francs and Luxembourg Francs 50 = US$1. Buying and selling rates for Canadian dollars, French francs, pounds sterling, Swiss francs, and U.S. dollars are determined through the exchange market in which the banks may operate to effect authorized transactions; these rates are operative within official limits corresponding to Bfr 49.50 and Bfr 50.50 per US$1. Fixed buying and selling rates are established for other officially quoted currencies. For EPU currencies, there exists the possibility of transactions in a free market at fluctuating rates, but the use of exchange thus acquired is limited to a few transactions.

Exchange Control Territory

Belgium, Luxembourg, the Belgian Congo, and the Trust Territory of Ruanda-Urundi constitute the “Belgian Monetary Area.” The “Belgium-Luxembourg Economic Union” constitutes a single exchange control territory, as Luxembourg in agreement with Belgium introduces and applies in Luxembourg the same control legislation as in Belgium; Belgian and Luxembourg residents have the same exchange rights and obligations in both countries. Although the Belgian Congo and the Trust Territory of Ruanda-Urundi have an exchange control system of their own, very few restrictions are in force between the Belgium-Luxembourg Economic Union on the one side, and the Belgian Congo and the Trust Territory of Ruanda-Urundi on the other. The Belgian Monetary Area is treated as a single exchange control territory in relation to countries with which Belgium has concluded payments agreements.

Exchange Payments

Special conditions attach to payments to EPU countries. Payments for imports and most other items of a current nature due to EPU countries are authorized for payment either (1) in appropriate foreign exchange, or (2) in Belgian or Luxembourg francs to the account of a bank in the country or monetary area of the recipient. For capital items and a few invisibles such as tourism, exchange may be obtained in a free market where EPU currencies may be sold. Payments to other countries are made either (1) by crediting a Belgian or Luxembourg franc account appropriate to the country or monetary area of the recipient, or (2) in some cases, in appropriate foreign exchange.

Imports. Certain imports from any country require import licenses. Other imports are free of import license, but require a “déclaration” to be completed. Both import licenses and “déclarations” must be stamped by an authorized bank before import or payment may be effected. For most imports subject to the “déclaration” procedure and payable in Canadian or U.S. dollars or in Belgian or Luxembourg francs to the credit of a nonresident account related to Canada or the United States, approval of the central exchange control authority is required before the bank can affix its stamp.

Invisibles. Many nontrade payments abroad require licenses. Residents of all countries are generally permitted to transfer current earnings to their respective countries. Payments to EPU countries for expenses incidental to trade are freely permitted; to other countries, such payments are permitted up to 12 per cent of the value of the commodity. Transfers abroad in connection with expenses arising from the re-export trade and warehousing are made in accordance with the import or export license. Resident insurance companies have considerable independence in their exchange operations. Remittances for certain other purposes (e.g., subscriptions, various fees, charitable remittances, etc.) are freely authorized to EPU countries, and to others up to specified limits. Any amount of foreign exchange is granted for travel to EPU countries, and a maximum of foreign exchange equivalent to Bfr 1,000 per day up to the limit of (1) Bfr 50,000 is granted to persons traveling to Argentina, Brazil, Canada, Colombia, United States, and Uruguay, and (2) Bfr 10,000 for persons traveling to other countries; in addition, residents traveling abroad may take with them Bfr 25,000 in Belgian or Luxembourg banknotes or the equivalent in foreign banknotes. Earnings from investments are credited to appropriate nonresident accounts.

Capital. Investment of foreign capital made in foreign currency or out of balances on nonresident accounts can ordinarily be converted into the currency originally provided, or re-credited to an appropriate nonresident account. The investment of capital abroad by residents requires approval, but transfers of capital to EPU countries (other than the Federal Republic of Germany, Portugal, and Switzerland1) can be made freely.

Exchange Receipts

Special conditions attach to receipts from EPU countries. Such receipts must be obtained either (1) in Belgian or Luxembourg francs from a nonresident account related to the country or monetary area of the debtor, or (2) in appropriate foreign exchange. In the former case, a license from the exchange control authority is required for the debit to the nonresident account. In the latter case, the beneficiary may apply for a license permitting an authorized bank to purchase the exchange at the official market rate; or, under the terms of a general license, he may retain the exchange, or sell it in a free market where its use is limited to payments for non-specified invisibles, e.g., tourism and capital items, or use it himself for similar payments.

Exports. Most exports require export licenses. Other exports are free of export license but require a “déclaration” to be completed. Both export licenses and “déclarations” must be stamped by an authorized bank before export may be effected and, in the case of exports to EPU countries, payment accepted. For most countries, the exchange proceeds of exports must be obtained in the currency of the country concerned, unless payment is received from an appropriate nonresident account. Alternatively, whatever the importing country, the export proceeds may be obtained in Canadian or U.S. dollars. Proceeds of re-exports originating from the dollar area must be obtained in Canadian or U.S. dollars. Export proceeds in currencies other than those of EPU countries must be surrendered. Five per cent of export proceeds where these exceed Bfr 20,000 received in Belgian or Luxembourg francs from EPU countries or in any of their currencies sold to an authorized bank must be withheld for six months on a blocked account.2

Invisibles. Only exchange proceeds from commercial transactions in the currencies of non-EPU countries must be surrendered.3 All other exchange proceeds may be retained, but their disposal requires a license except in the case of non-specified payments in EPU currencies. There is no restriction on the amount of Belgian or Luxembourg banknotes which travelers may bring into Belgium or Luxembourg.

Capital. Residents may exchange or sell foreign securities and invest abroad the proceeds arising from the sale of such securities. The disposal of foreign exchange receipts of residents derived from capital requires a license except in the case of EPU currencies. Most foreign capital investments can be freely repatriated.

Nonresident Accounts

The accounts of nonresidents, i.e., those resident outside Belgium-Luxembourg, are designated according to the country or monetary area appropriate to the residence of the account holder. The conditions governing these accounts are as follows:

Countries other than Germany, Italy, Japan, and Spain

These accounts are designated “B” accounts and, except for those related to EPU countries (see 3 below), payments can be freely made to residents in the Belgian Monetary Area and to other “B” accounts related to the same country or monetary area as the account holder. “B” accounts may not be credited with the proceeds of the sale of foreign notes or coin.

a. United States

Payments from these accounts can be freely made to any other “B” account except those related to Switzerland.

b. Canada, Czechoslovakia, Denmark, France, Netherlands, Norway, Portugal, the Sterling Area, Sweden, Switzerland, and the United States

Balances on these accounts are convertible into their corresponding local currency.

c. Countries other than Austria, Argentina, Brazil, Bulgaria, Czechoslovakia, Denmark, Finland, French Franc Area, Germany, Greece, Hungary, Italy, Japan, Lebanon, Netherlands Monetary Area, Norway, Poland, Portuguese Monetary Area, Rumania, Spain, the Sterling Area, Sweden, Switzerland, Syria, Turkey, U.S.S.R., Uruguay, and Yugoslavia.

Payments from these accounts can be freely made to a “B” account not related (1) to one of the countries named above (except Brazil), or (2) to Andorra, Canada, Tangier, or the United States.

d. All other payments from “B” accounts require a license.

2. Germany, Italy, Japan and Spain

All entries on these accounts are subject to license, unless the account holder is of Belgian or Luxembourg nationality, when the funds on such an account can be paid to residents in the Belgian Monetary Area or to the account holder when in Belgium-Luxembourg.

3. Additional conditions attaching to accounts related to EPU countries (Austria, Denmark, Federal Republic of Germany, French Franc Area, Greece, Italy, Netherlands Monetary Area, Norway, Portuguese Monetary Area, the Sterling Area, Sweden, Switzerland, and Turkey)

Most debits to these accounts exceeding Bfr 5,000 require a license, except for transfers from such accounts to banks in the same country or monetary area as the transferor.

Changes during 1951

January 24

Banknotes sent from abroad could only be credited to a bank-note account related to the country of the sender. The facility of transferring balances on such accounts regardless of the country of the account holder was limited to transfers between accounts related to EPU countries.

February 15

Certain commodities were added to the list of items subject to export and import licensing.

March 1 and 27

A few more commodities were added to the list of items subject to export licensing.

April 24

Banknotes in Czechoslovak korunas, Danish kroner, Netherlands guilders, Norwegian kroner, pounds sterling, and Swedish kronor could (like banknotes in all other currencies) be negotiated freely at market rates by authorized dealers in foreign exchange.

May 1

Banknote accounts related to EPU countries could no longer be opened or credited.

May 29

Arbitrage operations in Swiss francs, U.S. dollars, and Belgian francs were prohibited, and transfers from nonresident accounts related to the United States to those related to Switzerland became subject to license.

June 1

A few more commodities were added to the list of items subject to export licensing.

June 4

A few more commodities were added to the list of items subject to export and import licensing.

June 18

The general license permitting the purchase of Belgian and Luxembourg securities to the debit of nonresident accounts (other than those related to the United States) was withdrawn.

June 19

Belgian banknotes mailed by banks from abroad could no longer be credited to banknote accounts, and the banknote account arrangements were, apart from the liquidation of existing balances, canceled.

The amount of banknotes which could be taken abroad by travelers was raised from Bfr 10,000 to Bfr 25,000 or the equivalent in other currencies.

July 18

The maximum amount of foreign exchange granted to travelers to Argentina, Colombia, the United States, and Uruguay was raised from Bfr 30,000 to Bfr 50,000, and the list of countries to which this applied was extended to include Brazil, Canada, and EPU countries except Switzerland.

September 1

Limitations on the amount of exchange made available for expenses incidental to trade, for traveling expenses, royalties, patent fees, trade marks, and the salaries of foreign workers were removed for payments to EPU countries (except Switzerland).

Residents were authorized to transfer capital through authorized banks to EPU countries except the Federal Republic of Germany, Portugal, and Switzerland.

September 3

A considerable number of commodities were added to the list of items subject to export licensing.

September 6

Further commodities were added to the list of items subject to export licensing.

September 10

Authorized banks could no longer automatically approve all import “déclarations” when payment was to be made in U.S. or Canadian dollars or in Belgian or Luxembourg francs to the credit of an American or Canadian nonresident account. Such applications, except for certain essential items, had to be referred to the central exchange control authority.

September 17

Residents who received export proceeds exceeding Bfr 20,000 (1) in Belgian or Luxembourg francs from an EPU country, or (2) by the sale to an authorized bank of the currencies of those countries, had to transfer 5 per cent of such proceeds to a special account blocked for 6 months.

October 9

Residents (other than authorized banks) were exempted from the obligation to surrender foreign exchange proceeds of exports expressed in currencies of EPU countries (other than Switzerland) and were authorized to negotiate such currencies with other residents and/or to use them for the settlement of any debts abroad.

Most debits exceeding Bfr 5,000 to nonresident accounts related to EPU countries or the purchase of their currencies became subject to a permit from the central exchange control authority. Transfers between nonresident accounts related to EPU countries, except to the account of a bank in the same country as the transferor, also became subject to license.

October 10

Payments by residents to EPU countries could only be made either (1) by crediting Belgium or Luxembourg francs to the nonresident account of a bank in the country or monetary area of the payee, or (2) in the currency of that country.

October 11

Authorized banks were no longer permitted to approve automatically “déclarations” in respect of exports to EPU countries and applications had to be referred to the trade control authority.

October 31

The arrangements of October 9 concerning the non-surrender of export proceeds were extended to include Swiss francs.

Payments in respect of imports and most invisibles due to residents in EPU countries in Belgian or Luxembourg francs could be made only by crediting the account of a bank in the country or monetary area of the beneficiary; if due in foreign currency, this had to be acquired from an authorized bank.

November 1

A new payments agreement concluded with Switzerland and regulating payments between that country and the Belgian Monetary Area became effective.

November 9

A few more commodities were added to the list of items subject to export licensing.

November 16

Switzerland was added to the list of countries, for travel to which no limit was set to the issue of travelers’ checks.

November 22

Taxes of 1, 2, and 3 per cent were applied to the export to any country of specified commodities. In the case of exports to Luxembourg for consumption in that country, a certificate of exemption could be obtained.

November 24

Imports made with the importer’s own exchange were made subject to exchange license.

November 29

Further commodities were added to the list of items subject to export licensing.

December 1

The time allowed for payment of imports was reduced from 3 months to 1 month in respect of imports from EPU countries.

December 17

The taxes on exports, effective November 22, 1951, were reduced to 1 per cent for exports to the Netherlands.4

The pound sterling was quoted officially in the Brussels foreign exchange market for authorized transactions.

Bolivia

Date of Introduction

In 1932. Last major revision April 8, 1950.

Nature of Restrictive System

Restrictions are exercised through import prohibitions, licenses granted up to the limits of individual exchange quotas, licenses required for nontrade payments, and multiple currency practices consisting of a fixed penalty selling rate and exchange taxes. Foreign exchange, with certain exceptions, must be surrendered. A multiple currency practice results on the buying side from the application of different exchange rates. All exports require licenses.

Exchange Rates

Par value: Bolivianos 60 = US$1. Official rates: buying Bs 60.00, selling Bs 60.60 per US$1. The fixed rates plus exchange taxes and the surrender of various portions of exchange at different rates yield various effective rates (see Table of Exchange Rates below).

Exchange Payments

Imports. All imports require import licenses. These are granted for essential and nonessential imports up to the limits of individual exchange quotas computed on the basis of essentiality of imports and price considerations, in addition to other criteria. Payments for essential goods and other authorized imports are effected at the Bs 60.60 and the Bs 101 rates, respectively, and in addition are subject to a tax of Bs 3 per U.S. dollar of the import value. Imports of luxury articles are generally prohibited, but certain commodities can be imported if the importer provides his own exchange or through the Banco Minero, which provides special import facilities at other rates.

Invisibles. Payments abroad require licenses. Transfers of profits up to 15 per cent annually of registered capital may be effected at the Bs 60.60 rate. Remittances to students and for travel and health reasons may be made at the Bs 60.60 rate. Other authorized payments are made at the Bs 104 rate.

Capital. Transfers of capital require approval. Transfers for amortization up to 30 per cent annually of registered foreign capital are effected at the Bs 60.60 rate. Transfers of nonregistered capital may be effected at the Bs 104 rate.

Exchange Receipts

Exports. All exports require licenses which are granted automatically if the exporter agrees to the surrender requirements. Depending on the price of tin, 40 or 42 per cent of exchange proceeds may be retained by tin exporters for specified purposes and the balance must be surrendered at the Bs 60 rate. The percentages of the exchange proceeds from the export of other minerals which must be surrendered at the Bs 60 and Bs 100 rates vary with world prices and the metal content of the ores. For non-mineral exports, the percentages of exchange which must be surrendered at the Bs 60 rate vary. The remainder must be used by the exporter to cover expenditures abroad or be surrendered at the Bs 100 rate. A rate of Bs 130 applies to the proceeds from certain minerals exported to certain European countries through the Banco Minero under barter arrangements.

Invisibles. Exchange from invisibles must be surrendered at the Bs 100 rate.

Capital. The investment of foreign capital must be registered and surrendered at the Bs 60 rate in order to obtain a transfer guarantee. Nonregistered capital may be sold at the Bs 100 rate.

Table of Exchange Rates (as at December 31,1951)(bolivianos per U.S. dollar)
BuyingSelling
60.00Tin exports to the extent of the surrender requirements. Percentages of other exports. Registered capital.60.60Government payments. Students, and travel for health purposes. Registered capital.
63.60

(Bs 60.60 rate plus Bs 3 taxes)
Essential imports.
100.00

(“Free Market” Rate)
Required percentages of non-tin exports. Invisibles. Nonregistered capital.101.00

(“Free Market” Rate)
Other invisibles. Nonregistered capital.
104.00

(Bs101 rate plus Bs 3 taxes)
Other authorized imports.
130.00Exports of certain minerals to certain European countries effected through the Banco Minero under barter arrangements.130.00Imports from certain European countries effected through the Banco Minero under barter arrangements.
190.00Imports of specified luxury items effected through the Banco Minero.
Note: The above rates for non-tin exports are not usually effective buying rates. The effective buying rates for these export proceeds are determined by the percentages at which particular proceeds are surrendered at the above rates.

Changes during 1951

January 2

The issue of import licenses for goods covered by private exchange was suspended.

January 11

Certain important items were removed from the list of commodities prohibited from importation.

February 24

A decree authorized the reopening and revision of the official registry of importers during the period March 15, 1951 to June 30, 1951.

February 26

A decree authorized the importation with private exchange or on a credit or consignment basis of certain machinery, equipment, and materials regarded as essential to the Bolivian economy.

July 12

A tax of Bs 1 per U.S. dollar on most payments imposed by a Decree of April 19, 1948, together with another tax of Bs 1 per U.S. dollar imposed by a law of November 14, 1950, was augmented by a a further tax of Bs 1 per U.S. dollar, making the total tax on most payments Bs 3 per U.S. dollar.

October 30

The issue of import licenses for goods covered by private exchange was re-established.

Brazil

Date of Introduction

In 1931. Last major revision in October 1949.

Nature of Restrictive System

Restrictions are exercised through licenses granted up to the limits of individual import quotas, through licenses required for nontrade payments, and through a multiple currency practice consisting of an exchange tax on most payments. Foreign exchange must be surrendered. Certain exports require licenses.

Exchange Rates

Par value: Cruzeiros 18.50 = US$1. Official rates: buying Cr$18.38, selling Cr$18.72 per US$1. A tax of 5 per cent imposed on most remittances yields an effective selling rate of Cr$19.656 per US$11 (see Table of Exchange Rates below).

Exchange Payments

Payments abroad require licenses. Practically all payments are subject to a 5 per cent remittance tax.1 These licenses are granted on the basis of an exchange priority system based on four categories to which varying percentages of exchange are allocated. These categories are:

1. “Superessential” imports such as agricultural machinery, fuel, petroleum, and scarce materials.

2. Essential imports.

3. Transfers of capital, profits, interest, and dividends up to certain limits. This category is subdivided into two groups, favored investments and common investments, according to their economic utility.

4. Necessary and nonessential imports.

Imports. All imports with the exception of specified essential commodities require import licenses. These licenses are granted up to the limits of individual import quotas computed on the basis of the firm’s previous imports and other criteria. Import licenses to import goods payable in “hard currencies”2 are issued on the basis of an exchange budget and only if the goods cannot be paid for in “soft currencies.” Exchange is granted to holders of import licenses according to availability of the currency required and in accordance with the priority schedule outlined above. Certain essential imports are not subject to the tax, and payments are made at the Cr$18.72 rate.

Invisibles. Exchange priority for payment of expenses incidental to trade transactions is determined by the category of the corresponding import. The granting of exchange at the official rate for remittances abroad for maintenance, travel, charity, noncommercial services, and medical treatment is temporarily suspended. Interest, dividends, and profits on registered capital may be transferred to a maximum of 8 per cent annually, but this percentage may be increased by the authorities for particular investments; transfers above the 8 per cent limit are treated as capital transfers for exchange allocation purposes. Payments abroad in respect of interest, dividends, and profits up to 8 per cent on registered capital are exempt from the remittance tax.

Capital. Transfers of registered capital are limited by law to a maximum of 20 per cent annually, and are exempt from the remittance tax. This percentage may be increased for particular investments. Investments abroad by residents are authorized only when exchange conditions permit.

Exchange Receipts

Exports. Certain exports require export licenses and shipping permits. Approval of the exchange control authorities is customarily granted if the exchange proceeds have been contractually sold in advance or guaranteed to be surrendered. Exports of goods in short supply may be restricted by the trade control authorities. All exporters are required by law to invest the cruzeiro equivalent of 20 per cent of their export proceeds in negotiable Treasury Bills which pay 3 per cent interest per annum and mature in 120 days.

Invisibles. Exchange receipts from invisibles must be surrendered, but exchange earnings from freight, insurance, and commissions may be kept in moderate amounts at authorized banks for payments on similar transactions.

Capital. The investment of foreign capital must be registered and surrendered in order to obtain a transfer guarantee.

Table of Exchange Rates (as at December 31, 1951)(cruzeiros per U.S. dollar)
SellingBuying
18.38All incoming exchange.18.72Government payments. Imports of specified essential foodstuffs, fuels, petroleum, newsprint, and book paper. Registered capital up to 20% per annum and interest, dividends, and profits thereon up to 8% per annum.
19.656

(Cr$18.72 rate plus 5% tax) 3
All other payments.
Note: Multiple exchange rates can result from the compulsory investment of 20% of export proceeds in negotiable Treasury Bills when the Treasury Bills carry interest or discount rates which result in an effective exchange rate for the total proceeds differing from parity by more than 1%.

Changes during 1951

February 8

Consideration of new barter transactions was suspended. The validity of outstanding authorizations was extended 30 days.

February 18

A further list was issued of products for which applications for import licenses could be submitted when payment was to be in pounds sterling, Swedish kronor, Swiss francs, or U.S. dollars.

April 30

The acceptance of applications was temporarily suspended for licenses for imports based on commercial agreements with Argentina, Austria, Czechoslovakia, Germany, Italy, the United Kingdom, and Yugoslavia in order to ensure equitable distribution of quotas among interested importers. This suspension did not apply to essential raw materials, machinery, and accessories. A new list was issued of commodities for which applications for licenses for imports payable in U.S. dollars or Swiss francs could be submitted. Imports payable in pounds sterling and Swedish kronor were no longer to be considered on the same footing as imports payable in “hard currencies.”

May 4

In the priority system for exchange licenses, the fifth category applicable to travel and maintenance was eliminated. The category related to foreign investments was subdivided into two groups, favored investments and common investments.

May 21

The requirement that exchange coverage for the transfer of freights could be granted only if the payment had originally been made in cruzeiros in Brazil was suspended from June 1, 1951 to December 31 1951 (and on June 27, indefinitely).

June 13

A law was signed permitting the authorities to raise the tax on foreign remittances from Brazil from 5 per cent to 8 per cent.

August 7

Imports by post (except small samples for noncommercial uses) were made subject to import licensing and exchange quotas.

September 15

A law was issued adding “profits” on registered foreign capital to the items exempted from the remittance tax.

Burma1

Date of Introduction

February 1940. Last major revision August 1, 1947.

Nature of Restrictive System

Restrictions are exercised through import prohibitions, licenses required for nonprohibited imports, and through licenses required for nontrade payments. Exchange is granted for nontrade payments and most imports authorized by these licenses. Foreign exchange must be surrendered. Most exports require licenses.

Exchange Rates

No par value for the Burmese Rupee. The official rate of exchange is Bur Rs 4.76 per US$1, but there is no official buying or selling rate for the U.S. dollar.

Exchange Payments

Payments to other parts of the Sterling Area must be effected either in sterling or in the appropriate Sterling Area currency. Payments to outside the Sterling Area must be effected in the foreign exchange appropriate to the country of the recipient or by crediting the appropriate sterling or Burmese rupee account of a nonresident.

Imports. Certain nonessential and luxury imports are prohibited. Many essential imports from neighboring countries or from the Sterling Area, certain textiles from Japan, and certain other imports from all countries except Canada and the “American Account” area,2 are free of license. All other imports require import licenses. Exchange is automatically granted for authorized imports, except in some cases where the import license does not provide for allocation of exchange.

Invisibles. Payments abroad require licenses.

Capital. Transfers of capital require approval.

Exchange Receipts

Exports. A few exports essential to the domestic economy are prohibited. Most exports are under governmental monopoly. Most other exports require licenses, which are customarily granted if the exporter agrees to surrender the exchange proceeds.

Invisibles. Exchange receipts from invisibles must be surrendered.

Capital. Exchange receipts from capital must be surrendered.

Changes during 1951

May 4

An Open General License was issued removing individual import license requirements on certain commodities, if imported from any country except Canada and the “American Account”, area.

June 16

Another Open General License was issued adding several items to the list of those free from import license if imported from any country except Canada and the “American Account” area.

August 6

Another Open General License was issued freeing additional items from import license if imported from any country except Canada and the “American Account” area.

November 1

Exporters were required to have on their shipping forms the endorsement of an authorized dealer in foreign exchange to the effect that arrangements have been made to obtain the proceeds of exports.

Ceylon

Date of Introduction

September 19, 1939. Last major revision June 1, 1948.

Nature of Restrictive System

Restrictions are exercised through import prohibitions, through licenses required for nonprohibited imports, and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange in specified currencies must be surrendered. Exports require licenses.

Exchange Rates

Par value: Ceylon Rupees 4.76190=US$1.1 The Ceylon authorities hold the Ceylon rupee steady in respect to the pound sterling; the Central Bank’s rates for the U.S. dollar vary from day to day on the basis of the rate for the U.S. dollar in London. The market rate in Ceylon for the pound sterling as at December 31, 1951 was buying Cey Rs 13.28, selling Cey Rs 13.33 per pound sterling, and for the U.S. dollar, buying Cey Rs 4.765 and selling Cey Rs 4.80 per US$1.

Exchange Payments

Payments must be effected either in the foreign exchange appropriate to the country or monetary area of the recipient or by crediting the appropriate sterling or Ceylon rupee account of a nonresident.

Imports. Certain imports are prohibited from any source. Certain other imports require an import license if imported from any source. Other specified imports require an individual import license only if imported from “hard currency” countries,2 Germany and Japan, but where such goods originate in Germany or Japan licenses are issued freely to importers of Ceylonese nationality. Exchange is automatically granted for authorized imports.

Invisibles. Payments abroad require licenses. Foreign exchange is freely granted for expenses incidental to trade transactions, transfers abroad of dividends, and other earnings due to nonresidents. Exchange for family maintenance, including secondary education abroad, is granted up to the applicant’s actual requirements. Exchange is also granted for the undergraduate or postgraduate education of dependents abroad. Residents traveling to countries other than the “hard currency” countries are granted specified amounts in the appropriate currencies, according to the applicant’s destination.

Capital. Transfers of capital require approval. Transfers due to persons residing in or taking up permanent residence in Sterling Area countries other than Ceylon are freely authorized. Most capital payments due to persons outside the Sterling Area can be used only for investment in approved securities. Capital transfers are authorized in limited amounts in cases of emigration to countries outside the Sterling Area.

Exchange Receipts

Exports. All exports require licenses, which are granted if the exporter undertakes to obtain the export proceeds in appropriate foreign exchange, or in sterling or Ceylon rupees from an account appropriate to the country of destination. A few commodities, mostly of a type essential to the national economy, require special export license. Foreign exchange in specified currencies must be surrendered.

Invisibles. Exchange receipts from invisibles in specified currencies must be surrendered.

Capital. The investment of foreign capital requires approval. Investment in approved projects insures subsequent repatriation up to the limits of the original investment. Foreign capital investments brought in from the Sterling Area may be freely repatriated. Exchange receipts in specified currencies from capital must be surrendered.

Changes during 1951

January 15

Additions were made to the lists of goods which could be imported without individual import licenses from, respectively, the Sterling Area (excluding Hong Kong) and all countries (except Japan).

April 3

Authorized dealers were permitted to deal in notes and coin of countries outside the Sterling Area at market rates.

June 28

New Open General Licenses were issued permitting the import of many commodities from non-dollar countries except Germany and Japan and of many other commodities from dollar countries.

September 18

The basic ration for travel abroad was increased with effect from July 1, 1951 for persons traveling to all countries except Canada and the “American Account” Area. The amount of currency notes and coin which could be taken out of Ceylon by travelers was also increased.

November 26

A list was published of goods which could be imported without quantitative restrictions from Germany and Japan by importers of Ceylonese nationality in possession of general import licenses.

November 27

The procedure for payment in Sterling Area currencies for imports from other Sterling Area territories was simplified.

Chile

Date of Introduction

July 1931. Last major revision November 21, 1950.

Nature of Restrictive System

Restrictions are exercised through import prohibitions, licenses for most nonprohibited imports, licenses for certain nontrade payments, and multiple currency practices consisting of fixed penalty selling rates and two free markets. Foreign exchange, with certain exceptions, must be surrendered. A multiple currency practice results on the buying side from the application of different fixed rates and free market rates. Exports require licenses except exports of copper, iron, nitrate, and iodine by the large mining companies.

Exchange Rates

Par value: Chilean Pesos 31 = US$1. Official rates: buying P 31.00, selling P 31.10 per US$1. The fixed rates, mixing system, and free markets yield various effective rates (see Table of Exchange Rates below).

Exchange Payments

Imports. The import of certain luxury goods and goods of a type produced locally is prohibited. Certain goods may be imported free of license, the exchange being obtained at the “free market” rate currently P 90 per U.S. dollar. Other imports require import licenses. Payments of highly essential imports, such as sugar and drugs, are effected at the P 31.10 rate. Payments for specified raw materials (e.g., gasoline, oil, rubber) are made at the P 50.10 rate. The import of certain luxury goods, such as washing machines, perfume oils, and watches, is permitted only through a free market in which exchange is derived from the export of domestically-produced gold. The rate in this market fluctuates and is currently about P 135 per U.S. dollar. The import of certain other luxury goods is permitted with exchange derived from exports of wine. The rate for this purpose is 20 pesos higher than the free market exchange rate. The general import rate of P 60.10 per U.S. dollar applies to all other imports.

Invisibles. Payments abroad at rates fixed by the authorities require licenses; other payments may be made through a free market, currently P 93.00 per U.S. dollar.

Capital. Transfers abroad, in full or in part, of foreign capital entering the country in currency after November 21, 1950 may be effected through the free market without the need for a prior permit; in like manner, transfers abroad of earnings of such capital are also effected through the free market. Amortization and profits of certain investments made prior to the date indicated are subject to special conditions, as is amortization and interest on external debts of the Government and public institutions.

Exchange Receipts

Exports. With the exception of exports of copper, iron, nitrate, and iodine, all other exports are subject to prior permit, and the exchange proceeds must be returned to the country. The large foreign-owned mining companies (copper and iron) are required to surrender at the special rate of P 19.37 per dollar the foreign exchange necessary for their local currency expenditures in the country. The proceeds of exports of nitrate and iodine must be surrendered and liquidated at the rate of P 50 per dollar, with the exception of an amount of approximately 2 per cent of the total, which is sold to the Treasury at the special rate of P 19.37 per dollar. The surrender of proceeds of exports of copper cuttings and scraps made by national companies takes place at the rate of P 43 per dollar. Export proceeds of manufactured, processed, and semi-processed copper are surrendered at mixed rates: the f.a.s. cost of the raw material at P 60, and the remainder at P 31 per dollar. The proceeds of some minor exports are liquidated at the P 60 rate; the proceeds of other exports are liquidated at the free rate. Certain farm exports are liquidated at mixed rates derived from percentages of the P 31 and P 60 rates and others at the free rate. The proceeds of exports of newly-produced domestic gold and of exports of wine may be used for the importation of designated luxury goods.

Invisibles. Part of the exchange receipts from invisibles may be sold in a free market, currently at P 92.60 per U.S. dollar.

Capital. Exchange receipts from capital may be sold in a free market, currently at P 92.60 per U.S. dollar. The investment of foreign capital entering in the form of foreign currency must be registered in order to obtain a transfer guarantee.

Table of Exchange Rates (as at December 31, 1951)(pesos per U.S, dollar)
BuyingSelling
19.37Sales of exchange by the large mining companies (copper and iron) to cover local currency expenses in the country; sale of approximately 2% of the proceeds of exports of nitrate and iodine.
31.00Liquidation of certain insurance.31.10Imports of drugs, antibiotics, sugar, newsprint, tallow, wheat, flour, and certain government imports. Certain invisible foreign-trade items.
43.00Exports of copper scrap. Certain invisible foreign-trade items.43.10Imports of raw cotton, articles and appliances for medical and dental use, certain imports of public and semi-public institutions. Some invisible foreign-trade items.
49.851

(35% at P 31 and 65% at P 60)
Exports of bran, hides, skins, wax, wool.
50.00Exports of nitrate and iodine.50.10Imports of crude oil, gasoline, tea, yerba mate, paraffin, antibiotics, kerosene, rubber, jute, cellulose, ships, etc. Certain invisible foreign-trade items.
54.20 2

(20% at P 31 and 80% at P 60)
Exports of lentils, frozen meats and chick peas.
60.00Exports of certain agricultural products (barley, kidney beans, soap-bark, timber). Sale of exchange by large mining companies (copper and iron) to cover local currency expenses for new investments in the country.60.10General import rate. Certain foreign-trade invisibles.
90.002

(“Free Market” Rate)
Designated exports (products of medium and small mining industry, manufactures, petroleum, certain agricultural products, etc.).90.20

(“Free Market” Rate)
Designated nonessential imports. Invisible items not authorized at other exchange rates.
92.60

(Fluctuating Free Market Rate)
Invisibles; receipts on account of capital.93.00

(Fluctuating Free Market Rate)
Other invisible foreign-trade items, including tourism and private capital movement.
110.003

(Wine Rate)
Exports of wine.110.20

(Wine Rate)
Designated luxury imports.
135.00

(Fluctuating Gold Market Rate)
Exports of newly-produced domestic gold.135.00

(Fluctuating Gold Market Rate)
Designated luxury imports.

Changes during 1951

January 29

The list of commodities which could be imported against gold sales was revised.

February 9

A list was published showing the commodities whose import during 1951 was prohibited.

May 10

The January 29 list of imports against dollars derived from gold exports was revised.

May 30

A new list of commodities which could be imported against the proceeds of wine exports was published.

July 18

The import of certain commodities previously permitted from all sources was restricted to imports from countries with which Chile has payments or compensation agreements.

The authorization previously granted to exchange brokers to operate in the free market for exchange derived from and intended for visible foreign trade was suspended. Consequently, these operations could be performed thereafter only by authorized commercial banks. Transactions of brokers authorized to operate in this free market were limited to invisible foreign-trade operations.

August 27

The list of commodities which could be imported against gold sales was again revised.

November 13

Regulations were established for exports of processed and semi-processed copper.

December 10

Automobiles, previously importable against gold sales, were placed on the prohibited import list.

China1

Date of Introduction

June 15, 1949. Last major revision April 11, 1951.

Nature of Restrictive System

Restrictions are exercised through import prohibitions, licenses required, for imports and nontrade payments and through a multiple currency practice resulting from the use of an exchange certificate rate in addition to the Bank of Taiwan’s rate. A multiple currency practice also exists on the buying side resulting from different rates applied to export proceeds and to other items.

Exchange Rates

No par value for the New Taiwan Dollar. Official rate of the New Taiwan Dollar: NT$5.00 per US$1, but no transactions are effected at this rate. There are two quoted rates, viz., the Bank of Taiwan’s rate: buying NT$10.25 per US$1, selling NT$10.30 per US$1; and a Foreign Exchange Deposit Certificate rate: buying NT$15.55, selling NT$15.65 per US$1. This rate is fixed from time to time by a Rate Fixing Committee. A third effective rate is derived from a combination of these two rates (see Table of Exchange Rates below).

Exchange Payments

Imports. Transactions of the government and governmental enterprises and payments for private imports of specified goods deemed essential from time to time by the authorities are effected at the NT$10.30 rate. Imports of certain specified luxuries are prohibited, and imports of specified commodities which may be produced locally or of which there are sufficient stocks are temporarily suspended. All other imports require an individual license and are effected at the NT$15.65 rate. Upon production of the relevant import license, exchange can be obtained from the Bank of Taiwan against payment in local currency at the exchange certificate rate, in gold or appropriate foreign currencies, or against exchange certificates. Barter transactions are permitted under separate arrangements.

Invisibles. Private nontrade payments require specific government approval and are effected at the exchange certificate rate. Travelers leaving Taiwan may take with them foreign currencies aggregating not more than the equivalent of US$200.

Capital. Capital payments due to nonresidents are normally not approved. New capital investments abroad by residents are prohibited.

Exchange Receipts

Exports. All export proceeds must be surrendered. Government enterprises must surrender their total export proceeds at the Bank of Taiwan’s rate of NT$10.25 per US$1. Private exporters surrender 20 per cent of their export proceeds at this rate in return for local currency and the remaining 80 per cent in return for Foreign Exchange Deposit Certificates or local currency at the prevailing certificate rate. Certain specified categories of exports, such as gold or silver bullion or coins, are prohibited. Barter transactions are permitted under separate arrangements.

Invisibles. Exchange receipts from invisibles must be surrendered at the certificate rate. Travelers entering Taiwan may bring in any amount of foreign currencies and either hold them or surrender them at the certificate rate.

Capital. Residents are permitted to hold foreign exchange representing capital receipts but may only dispose of this exchange by selling it to the Bank of Taiwan for local currency at the certificate rate or surrendering it in return for Foreign Exchange Deposit Certificates. Repatriation of foreign capital is allowed only in special circumstances.

Table of Exchange Rates (as at December 31, 1951)(new Taiwan dollar per U.S. dollar)
BuyingSelling
5.00….5.00….
10.25

(Bank of Taiwan’s Rate)
Exports of government enterprises.10.30

(Bank of Taiwan’s Rate)
Government payments. Specified essential imports.
14.49

(20% at the 10.25 rate and 80% at the Foreign Exchange Deposit Certificate Rate)
Private exports.
15.55

(Foreign Exchange Deposit Certificate Rate)
Invisibles. Capital.15.65

(Foreign Exchange Deposit Certificate Rate)
Other authorized imports. Authorized invisibles.

Changes during 1951

April 9

Private dealings in gold and foreign exchange were prohibited. A foreign exchange certificate Rate Fixing Committee was established.

April 11

New exchange certificate rates were announced. These rates were buying NT$15.85, selling NT$15.95 per US$1; for trade with Japan special rates of buying NT$15.08, selling NT$15.18 per US$1 were announced. New import control regulations were also introduced; these provided that, once an import license was granted, an importer could obtain the appropriate foreign exchange direct from the Bank of Taiwan by payment in local currency at the exchange certificate rate.

May 8

The special U. S. dollar rate for trade with Japan was abolished and this trade was to be conducted at the same dollar rates as apply to transactions with other countries.

May 21

The exchange certificate rate was changed to buying NT$15.55, selling NT$15.65 per US$1.

Colombia

Date of Introduction

September 1931. Last major revision March 20, 1951.

Nature of Restrictive System

Restrictions are exercised through the prohibition of certain imports and of some nontrade payments, and a multiple currency practice consisting of exchange taxes on most exchange operations. Foreign exchange, with few exceptions, must be surrendered. A multiple currency practice results on the buying side from the application of a mixed effective rate for coffee export proceeds. All exports require prior registration.

Exchange Rates

Par value: Colombian Pesos 1.94998=US$1. Official rates: buying Ps$2.50, selling Ps$2.51 per US$1. The official rates, exchange taxes, and the mixed rate for coffee exports yield various effective rates (see Table of Exchange Rates below).

Exchange Payments

Imports. The import of certain luxury goods and goods of a type produced locally is prohibited. Other imports require prior registration. A cash deposit of 10 per cent of the value of the goods in Colombian currency has to be made as a prerequisite to this registration. Certain imports require the prior approval of certain ministries. Imports are effected at the basic selling rate of Ps$2.51 and with a few exceptions are subject to a 3 per cent stamp tax calculated on the Ps$2.50 rate.

Invisibles. Payments abroad require prior registration. Certain essential payments may be effected at the selling rate of Ps$2.51 without tax. Other authorized payments are effected at this rate plus the stamp tax or the stamp tax and resident tax. Exchange for travel abroad is granted up to a limit of US$600 per month per person for not more than two months per year at the rate of Ps$2.51 plus taxes totaling 6 per cent. Students meeting the legal requirements are allowed remittances of up to US$250 or US$150 per month, depending on the type of study, at the rate of Ps$2.51, free of tax. For medical treatment outside Colombia up to US$1,500 is granted at the selling rate of Ps$2.51 plus 6 per cent total taxes. Earnings on registered foreign capital may be transferred at any time at the rate of Ps$2.51 plus 3 per cent stamp tax. All taxes are calculated on the Ps$2.50 rate.

Capital. Transfers of capital require prior registration and may be effected at the selling rate of Ps$2.51 plus 3 per cent stamp tax calculated on the Ps$2.50 rate.

Exchange Receipts

Exports. All exports require prior registration. Some exports require the approval of certain ministries. Exchange proceeds must be surrendered. Exchange proceeds from coffee exports are sold partly at the Ps$1.95 rate and the rest at the Ps$2.50 rate. The percentage to be surrendered at the Ps$2.50 rate is raised 1½ per cent per month. All other export proceeds are surrendered entirely at the Ps$2.50 rate.

Invisibles. Exchange receipts from invisibles must be surrendered at the Ps$2.50 rate. Exchange proceeds from insurance and from earnings on resident investments abroad must be surrendered at the Ps$2.50 rate.

Capital. The investment of foreign capital must be registered and amounts representing capital imported in foreign exchange surrendered at the Ps$2.50 rate.

Table of Exchange Rates (as at December 31, 1951)(pesos per U.S. dollar)
BuyingSelling
2.1865

(57% at Ps$1.95 rate and 43%1 at Ps$2.50 rate)
Exports of coffee.
2.50All other exchange proceeds.2.51Official payments, including imports for use or consumption by the organizations concerned. Certain invisibles, e.g., essential students’ expenses up to specified limits.
2.56

(Ps$2.51 plus reduced stamp tax of 2% at Ps$2.50 rate)
Certain foreign banking services and payments of certain organizations.
2.585

(Ps$2.51 rate plus stamp tax of 3% at Ps$2.50 rate)
All other imports, and most commercial invisibles. Registered capital.
2.66

(Ps$2.51 rate plus stamp tax of 3% and resident tax of 3%, both at Ps$2.50 rate)
Other invisibles, e.g., travel abroad up to certain limits and additional transfers to make up the cost of aviation courses.

Changes during 1951

March 20

A complete revision of the exchange and import control system took place. Except for a prohibited import list of some 1,200 specified luxury or locally-produced items, practically all licensing restrictions on imports were removed. The basic buying and selling rates of Ps$1.95 and Ps$1.96 per US$1 were depreciated to Ps$2.50 and Ps$2.51 respectively. However, exchange proceeds from coffee exports were to be surrendered only 25 per cent at the Ps$2.50 rate and the balance at the old rate of Ps$1.95. Exchange taxes other than the stamp tax, resident tax, and draft tax were eliminated; exchange certificates and all mixed rates based thereon were also eliminated. The basis for computing the stamp tax on exchange sales was changed from 4 per cent calculated on the Ps$1.95 rate to 3 per cent calculated on the Ps$2.50 rate. Other taxes were also to be calculated on the Ps$2.50 rate.

August 3

A new decree governing foreign investments was issued. These had to be registered, and if in foreign exchange, sold to an authorized bank. Registered capital and net earnings thereon could be repatriated at any time, subject to registration.

September 14

The 6 per cent tax applicable to exchange operations for film and theatrical earnings was eliminated.

September 20

The basic monthly exchange allowance for travel abroad was raised from US$500 to US$600 per person and limited to two months a year.

October 29

The percentage of exchange proceeds from coffee exports surrenderable at the Ps$2.50 rate was raised from 25 per cent to 40 per cent and provision was made for this percentage to be increased progressively by 1½ per cent each month until the Ps$2.50 rate becomes applicable to the total proceeds.

Costa Rica

Date of Introduction

January 16, 1932. Last major revision September 29, 1951.

Nature of Restrictive System

Restrictions are exercised through licenses required for payments through the official market, and through a multiple currency practice consisting of an official market for certain trade transactions and a free market for most other transactions. Foreign exchange derived from exports and certain invisibles must be surrendered. All exports require licenses.

Exchange Rates

Par value: Costa Rican Colones 5.615=US$1. Official rates: buying ₡ 5.60, selling ₡ 5.67 per US$1. A free market yields an additional rate (see Table of Exchange Rates below).

Exchange Payments

Payments abroad through the official market require licenses. These licenses are granted only for specified essential imports and certain nontrade payments, in chronological order of application. Foreign exchange for other imports and invisibles must be purchased in the free market, and no licenses are required.

Imports. Imports do not require import licenses. Payments for imports can be made freely through the free market, but if payment is to be made through the official market, an exchange license is required. These licenses are issued only for essential imports specified in a “List of Primary Needs,” and in chronological order of application. By contract with the Costa Rican Government, a foreign-owned banana company uses its own exchange for imports.

Invisibles. Remittances for specified student expenses and government expenditures may be effected at the ₡ 5.67 rate. Earnings of registered foreign capital invested after January 30, 1933 (other than of foreign investments governed by special contracts) may be transferred at the ₡ 5.67 rate, up to 10 per cent annually of the investment. Other payments are effected through the free market currently at ₡ 7.00 per U.S. dollar.

Capital. Transfers of registered capital require approval and are effected at the ₡ 5.67 rate. Transfers of nonregistered capital may be effected at the free market rate. Certain foreign-owned investments are dealt with individually under special contracts.

Exchange Receipts

Exports. Exports require licenses which are usually granted if the exporter agrees to surrender the exchange proceeds at the ₡ 5.60 rate. Exports of goods in short supply may be restricted. A foreign-owned banana company must surrender some of the proceeds of Its exports at the ₡ 5.60 rate in accordance with the terms of a contract with the Government.

Invisibles. Exchange receipts from certain invisibles must be surrendered at the ₡ 5.60 rate. Receipts from other invisibles may be sold in the free market.

Capital. Exchange receipts from registered capital must be surrendered at the ₡ 5.60 rate. Receipts from nonregistered and repatriated capital may be sold in the free market.

Table of Exchange Rates (as at December 31, 1951)(colones per U.S. dollar)
BuyingSelling
5.60Exports. Certain invisibles. Registered capital.5.67Government payments. Essential imports. Students’ expenses. Registered capital.
6.98

(Fluctuating Free Market Rate)
All other receipts.7.00

(Fluctuating Free Market Rate)
All other payments.

Changes during 1951

June 23

The 10 per cent surcharge on sales of exchange in payment of goods in the preferential and first categories was abolished.

September 29

The Law for the Control of International Transactions expired and was replaced by a new International Payments Law. The surcharges of 55, 75, and 100 per cent on second, third, and fourth category imports were abolished.

Cuba

Date of Introduction

Exchange tax established July 1925.

Nature of Restrictive System

Restrictions are exercised through a multiple currency practice consisting of a 2 per cent exchange tax on all remittances abroad. An additional tax of 2 per cent is levied on remittances to former enemy countries.1 Payments to Spain require a license and must be effected through a special clearing account. Payments to residents of China and North Korea must be made by bank transfer through a bank located in the United States. Payments are not otherwise restricted. The proceeds of sugar exports must be partially surrendered.

Exchange Rates

Par value: Cuban Peso 1=US$1. Official rates: buying P 1.00, selling P 1.02 (including 2 per cent exchange tax) and P 1.04 (with additional 2 per cent tax) per US$1.

Exchange Payments

An exchange tax of 2 per cent is applied only to sales of exchange for payments abroad. Domestic sales of U.S. dollar notes and payments from domestic bank deposits denominated in U.S. dollars are free of tax. An additional tax of 2 per cent is levied on remittances to former enemy countries.1 Payments to Spain require a license and must be effected through a special clearing account. Payments to residents of China and North Korea must be made by bank transfer through a bank located in the United States. Payments are not otherwise restricted.

Exchange Receipts

Exports do not require licenses except a routine one on tobacco and its products and by-products which require a certificate of the Tobacco Control. Sugar and by-products also require certificates of the corresponding controlling agencies to ensure the international distribution accorded. In addition, proof must be submitted for these and all other merchandise exported that the 2 per cent tax has been paid. This tax is recoverable against proof that the exported merchandise was duly landed at port of destination and that the proceeds were credited in a bank account in Cuba. Through a bond given by banks the 2 per cent is not exacted if proof of credit is presented within a certain period, 180 days for the United States, 240 for other destinations, except in the case of tobacco and its products to Spain, in which case up to 720 days are allowed, owing to the system of consignment shipments liquidated by the Spanish tobacco monopoly, when the goods are actually sold. Thirty per cent of the exchange dollar proceeds of sugar and syrup exports must be surrendered for Cuban pesos at par. All other exchange receipts are freely disposable. Certain goods, mainly native hardwoods, are restricted when in short supply.

Changes during 1951

February 8

Transfers to residents of China and North Korea could be effected only by bank transfer through a bank located in the United States.

Czechoslovakia

Date of Introduction

October 31, 1931. Last major revision April 11, 1946.

Nature of Restrictive System

Authorizations of imports and exports are determined within the economic plan. Foreign trade is organized on the basis of monopolistic trade organizations dealing in specific commodities. Exchange is granted for all authorized payments. Foreign exchange must be surrendered.

Exchange Rates

Par value: Korunas 50=US$1. Official rates: buying Kčs 49.85, selling Kčs 50.15 per US$1.

Exchange Payments

Imports. Authorizations of imports are determined within the economic plan. Exchange is automatically granted for authorized imports.

Invisibles. Payments abroad require licenses. Residents traveling abroad may take with them a maximum of Kčs 500 monthly in domestic or foreign currency. Nonresidents traveling abroad may take with them Kčs 500 monthly in Czechoslovak banknotes and coins.

Capital. Transfers of capital require approval.

Exchange Receipts

Exports. Authorizations of exports are determined within the economic plan. Exchange receipts must be surrendered.

Invisibles. Exchange receipts from invisibles must be surrendered. Persons may bring in a maximum of Kčs 500 monthly in Czechoslovak banknotes and coins.

Capital. The investment of foreign capital requires approval. Exchange receipts from capital must be surrendered.

Changes during 1951

No significant changes occurred.

Denmark

Date of Introduction

November 18,1931. Last major revision August 9,1950.

Nature of Restrictive System

Restrictions are exercised through licenses required for imports and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Restrictions are also exercised through advance deposit requirements attached to certain imports. Foreign exchange must be surrendered. Certain exports require licenses.

Exchange Rates

Par value: Danish Kroner 6.90714=US$1. Official rates: buying DKr 6.895, selling DKr 6.92 per US$1.

Exchange Payments

Payments to nonresidents must be made in appropriate foreign exchange or to an appropriate nonresident account.

Imports. Most imports require import licenses, but certain imports from EPU countries and their associated territories1 are either free of license or licenses are freely issued. For some of these imports (e.g., textiles, piece goods, and watches), an advance deposit of 120-180 per cent of the value of the goods is required in order to obtain the import license. Two thirds of the deposit is returnable three months later, and the remaining one third, at the end of twelve months. Exchange is automatically granted for authorized imports.

Invisibles. Payments abroad require licenses, which are freely granted for most payments. Residents traveling to specified countries are freely granted certain amounts in the appropriate currencies. Persons traveling abroad may take with them a maximum of DKr 100 in Danish banknotes.

Capital. Transfers of capital generally require approval. Transfers of proceeds from matured government bonds and municipal loans and contractual repayments of private mortgages are freely authorized.

Exchange Receipts

Exports. Certain exports require licenses. Proceeds of exports must be obtained from a nonresident account appropriate to the country to which the goods are destined, or in appropriate foreign exchange which must be surrendered.

Invisibles. All exchange receipts must be obtained from a nonresident account appropriate to the country of remittance, or in appropriate foreign exchange which must be surrendered. Shipping and insurance companies are permitted to use their receipts of foreign exchange for payments necessary for their operations. Persons may bring in a maximum of DKr 100 in Danish banknotes.

Capital. The investment of foreign capital requires approval. Exchange receipts from capital must be surrendered.

Changes during 1951

February 15

A system was introduced by which advance deposits were required in respect of certain liberalized imports, mainly piece goods from EPU countries. For such items, the deposit was fixed at 120 or 150 per cent, two thirds being returnable three months later and the remaining one third to be repaid at the end of twelve months.

February 26

The range of commodities subject to export control was enlarged.

July 2

The list of imports from EPU countries free from quantitative restrictions was extended. For these items, import licenses would be freely issued.

July 16

The licensing system requiring advance deposits for certain liberalized imports from EPU countries introduced in February 1951 was extended to include textiles and clothing. For some of these items, the amount of the deposit was 180 per cent of the value of the license, returnable on the same conditions.

October 17

The 20 per cent tax on sales of exchange for travel introduced on November 20, 1950 was repealed.

November 13

The liberalization of imports from EPU countries against advance deposits was extended to watches, the deposit for this item being 180 per cent.

December 1

The range of commodities subject to export control was further enlarged.

December 12

It was announced that the basic annual exchange allowance for tourist travel in certain countries would be raised from DKr 500 to DKr 750 per person effective January 1, 1952.

Dominican Republic

Date of Introduction

Exchange control system established July 29,1942.

Nature of Restrictive System

Restrictions are exercised through licenses required for imports. Exchange payments are not restricted although a licensing system formally exists. Certain exports require licenses.

Exchange Rates

Par value: Dominican Peso 1=US$1. Official rates: buying and selling at the par value.

Exchange Payments

There are no restrictions on payments. Import licenses, which take the form of “Recommendations to Import”, are required for all goods in order to ensure equitable internal distribution of goods in world short supply or which are produced domestically in sufficient quantities.

Exchange Receipts

Export licenses are required for sugar, for the re-export of articles imported, and for exports whose composition or structure includes imported articles. Exchange receipts are freely disposable.

Changes during 1951

February 9

Pursuant to a decree of February 6, 1952 as amended by another decree of February 9, 1952, imports from all countries were made subject to import license.

Ecuador

Date of Introduction

In 1932. Last major revision December 1,1950.

Nature of Restrictive System

Restrictions are exercised through multiple currency practices resulting from the use of two free markets, import prohibitions applied to certain imports, and licenses required for certain nontrade payments. Foreign exchange, with certain exceptions, must be surrendered. Multiple currency practices result on the buying side from the application of two free market rates. All exports require licenses.

Exchange Rates

Par value: Sucres 15=US$1. Official rates: buying S/ 15.00, selling S/ 15.15 per US$1. The official rates and free and compensation1 market rates yield various effective rates (see Table of Exchange Rates below).

Exchange Payments

Imports. Imports require import licenses which are in most cases issued freely. Certain imports are prohibited. Essential imports are effected at the S/ 15.15 rate. Semi-essential imports are effected at the S/ 15.15 rate and are subject to a 33 per cent ad valorem tax payable at the time the goods are cleared through the Customs. For essential and semi-essential imports financed by letters of credit, domestic currency equal to the amount of the credit must be supplied. However, for goods listed as “critical articles,” importers need deposit with the Central Bank only 25 per cent of the value of the goods at the time the letter of credit is opened, and the balance when the documents arrive in Ecuador. In respect of goods listed as “especially critical articles,” the Central Bank will rediscount up to 100 per cent of the value of loans or of letters of credit made by commercial banks in respect of imports of these commodities. When the financing is by letter of credit, the Central Bank has to be repaid: 25 per cent when the credit is opened or, where no credit is established, when the goods arrive in Ecuador; 25 per cent within 180 days after the arrival of the goods; and the remaining 50 per cent within 270 days after the arrival of the goods in Ecuador. Luxury imports must be made through either a compensation market or a free market, and are subject to a 44 per cent ad valorem tax payable at the time the import license is issued. In addition, the corresponding foreign exchange purchased in the compensation2 or free market must be deposited with the Central Bank before the import license is issued.

Invisibles. Payments abroad at the S/ 15.15 rate require licenses which are granted for certain remittances for travel, education, and maintenance. All other payments may be effected through a free market.

Capital. Transfers of registered capital require approval. Payments of dividends, profits, and amortization on registered foreign capital may be effected at the S/ 15.15 rate up to a limit which cannot be fixed at less than 12 per cent per annum of the capital investment. Investments abroad by residents and transfers of nonregistered capital are effected through a free market.

Exchange Receipts

Exports. All exports require licenses which are granted automatically if the exchange proceeds in convertible currency have been contractually sold in advance or guaranteed to be surrendered. Exchange proceeds for most exports must be surrendered at the S/ 15 rate. For banana exports, US$1.20 per stem must be surrendered at the S/ 15 rate. Proceeds of petroleum and gold exports are exempt from the surrender requirement. Thirty per cent of the exchange proceeds from exports of pharmaceutical specialties, 60 per cent from balsa wood and ivory nut exports, 70 per cent from exports of embroidered white cloth items, and 100 per cent from certain other minor exports may be used for the import of specified luxury goods through the compensation market.2

Invisibles. Exchange to cover the local currency requirements of foreign owned companies must be surrendered at the S/ 15 rate. All other exchange receipts may be sold in a free market.

Capital. The investment of foreign capital must be registered and surrendered at the S/ 15 rate in order to obtain a transfer guarantee. Nonregistered capital may enter through a free market in which case the transfers of capital and earnings must be made through a free market.

Table of Exchange Rates (as at December 31, 1951)(sucres per U.S. dollar)
BuyingSelling
15.00Exports other than petroleum, gold, and certain minor exports. Requirements of foreign-owned companies for current operating costs. Registered capital.15.15Essential and semi-essential imports. Government nontrade payments. Specified invisibles. Registered capital.
15.84

(70% at the S/ 15 rate and 30% at the Compensation Market Rate)
Exports of pharmaceuticals, straw caps, and straw hats to non-U.S., non-Argentina markets.
16.68

(40% at the S/ 15 rate and 60% at the Compensation Market Rate)
Exports of ivory nuts and balsa wood.
16.96

(30% at the S/ 15 rate and 70% at the Compensation Market Rate)
Exports of embroidered white cloth such as napkins, tablecloths, etc. Straw hats exported to Argentina.
17.35

(Fluctuating Free Market Rate)
Invisibles. Nonregistered capital.17.35

(Fluctuating Free Market Rate)
Most luxury imports. Other invisibles. Nonregistered capital.
17.80

(Fluctuating Compensation Market Rate)
Certain minor exports.17.80

(Fluctuating Compensation Market Rate)
Certain luxury imports.
Note: Proceeds of banana exports must be surrendered at the S/ 15 rate only to the extent of US$1.20 per stem.Note: Semi-essential and luxury imports are subject to ad valorem taxes of 33% and 44% respectively, calculated at the official rate on the c.i.f. value of the import permits.

Changes during 1951

January 30

The requirement that the 33 and 44 per cent taxes on the c.i.f. value of import permits be paid in advance was suspended in respect of specified “critical articles” only. The tax on such items became payable at the same time as payment was made for the import.

February 16

The list of goods which could be imported on a compensation basis was extended.

March 8

Changes were made in the items listed in the three categories of imports—essential goods, useful goods, and luxury articles. The Central Bank announced that importers of “critical articles” would have to deposit only 25 per cent of the value of the goods at the time the letter of credit was opened and the remainder at the time of arrival of the documents in Ecuador.

April 18

A list of “especially critical articles” was issued, and special credit facilities were announced for financing imports on this list.

May 18

The list of items benefiting from the special credit facilities was extended.

May 30

The 33 per cent tax became payable only at the time payment is made for the import in respect of all goods subject to that tax. (See January 30 above.)

June 1

The list of items benefiting from the special credit facilities was further extended.

September 29

The 33 and 44 per cent taxes payable on specified imports were again to be collected at the time of issue of the import license.

December 17

The 33 per cent tax payable on specified imports became payable only at the time of removal of the goods from the Customs or Parcel Post Office.

Egypt

Date of Introduction

September 28, 1939. Last major revision July 14, 1947.

Nature of Restrictive System

Restrictions are exercised through licenses granted up to the limits of individual import quotas, and licenses required for non-trade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange from current transactions must be surrendered. A few exports require licenses.

Exchange Rates

Par value: Egyptian Pound 1=US$2.87156. Official rates: buying US$2.8747, selling US$2.8676 per LE 1.

Exchange Control Territory

There is no exchange control between Egypt and the Anglo-Egyptian Sudan, but each of the two territories has its separate exchange control system.

Exchange Payments

Imports. Imports require import licenses which are granted up to the limits of individual import quotas. However, imports from the Sterling Area, French Franc Area, those countries to which the United Kingdom Transferable Account arrangements apply, and certain other countries to which transfers in sterling can be made do not require licenses. Appropriate exchange is automatically granted for authorized imports, but payments for some imports originating from “hard currency” sources is made by crediting Egyptian pounds to Nonresident Export Accounts (see below).

Invisibles. Payments abroad require licenses. Foreign exchange is freely granted for expenses incidental to trade transactions. Certain freedom in exchange operations is granted to shipping agents. Remittances for family maintenance and students’ and traveling expenses abroad to specified countries are freely authorized up to certain limits. However, remittances for maintenance to “hard currency” countries1 are authorized up to certain limits only for nationals of those countries. The transfer of income and earnings to nonresidents is authorized to all countries except “hard currency” countries. Those due to “hard currency” countries are credited to nonresident accounts. Payments from these accounts may be made for (1) investments in Egyptian Government bonds and in Egyptian registered securities not redeemable within ten years; (2) subscriptions in respect of increase of capital in Egyptian companies in which the account holder is already a shareholder; (3) expenses of the account holder and his family while in Egypt; (4) monthly remittances to the account holder abroad, subject to license.

Capital. Transfers of capital require approval. Capital payments due to nonresidents, other than residents of the Sterling Area, are credited to nonresident accounts. Payments from these may be made for (1) investments in Egyptian Government bonds and in Egyptian registered securities not redeemable within ten years, (2) subscriptions in respect of increase of capital in Egyptian companies in which the account holder is already a shareholder, and (3) expenses of the account holder and his family while in Egypt up to LE 1,000 per annum. Transfers of capital to residents of the United Kingdom are authorized, with certain limitations, in accordance with a special agreement with the United Kingdom. Exchange is granted for the purchase in the United Kingdom of Egyptian securities by residents, provided the securities are imported into Egypt. Certain facilities exist for limited investment abroad in “soft currencies.” Other investments abroad by residents are prohibited.

Exchange Receipts

Exports. Few exports require licenses. Export proceeds must be received (1) in appropriate foreign exchange, (2) in sterling eligible for credit to an Egyptian Transferable Account in the United Kingdom, (3) in Egyptian pounds from a nonresident account appropriate to the country of destination, or (4) in the case of exports to certain countries, from a Nonresident Export Account (see below). Exchange receipts must always be surrendered. Exporters of non-dollar goods sold for dollars and of cotton to the United States in excess of the Egyptian quota are granted import licenses for certain specified goods to the extent of 30 per cent of the value of their exports. This 30 per cent allocation is granted after repatriation and surrender of the full amount of the goods exported.

Invisibles. Receipts from invisibles must be obtained in one of the ways applicable to export proceeds and the foreign exchange receipts surrendered.

Capital. The investment of foreign capital requires approval. Exchange receipts from capital must be surrendered.

Nonresident Export Accounts

Apart from ordinary nonresident accounts there are Non-resident Export Accounts which are used for the importation of goods of “hard currency” origin against payment in Egyptian pounds to the credit of these accounts. Goods can be exported from Egypt to specific countries by debiting these accounts. Export Accounts may be credited with payments in respect of goods imported into Egypt against import licenses stipulating settlement to the credit of an Export Account; transfers from other Export Accounts and amounts specifically approved by the Central Exchange Control. Payments from Export Accounts may be made to residents of Egypt in settlement of goods exported from Egypt to any country other than the following: the American Account Area,2 Argentina, Brazil, Bulgaria, Canada, Federal Republic of Germany, French Franc Area, Hungary, Japan, Poland, Portuguese Monetary Area, Saudi Arabia, Switzerland, and Yugoslavia.

Changes during 1951

March

The export of certain minerals was prohibited.

May 3

Exporters of non-dollar goods sold for dollars and of cotton to the United States in excess of the Egyptian quota are granted import licenses for certain specified goods to the extent of 30 per cent of the value of their exports. This 30 per cent allocation is granted after repatriation and surrender of the full amount of the goods exported. Exports to Japan could be paid for in sterling under certain conditions or in U.S. dollars or in goods.

July

The export of metal products of all types was prohibited.

July 19

The annual exchange allocation for travel abroad to specified countries was reduced from LE 300 to LE 200 per person.

September 3

Payment for imports from the Belgian Monetary Area could be settled only in pounds sterling. Payment for invisibles was normally to be settled also in pounds sterling, but applications for payment in Belgian francs would be considered.

September

The Belgian Monetary Area was removed from the list of countries to which the Nonresident Export Account arrangements do not apply.

Bulgaria was added to the list of countries to which the Non-resident Export Account arrangements do not apply.

Ethiopia

Date of Introduction

October 31, 1942. Revised September 11, 1949.

Nature of Restrictive System

Restrictions are exercised through licenses. All foreign exchange receipts must be surrendered. All exports require licenses.

Exchange Rates

Par value: Ethiopian Dollars 2.48447=US$1. Official rates: buying Eth$2.48, selling Eth$2.53 per US$1.

Exchange Payments

Payments outside Ethiopia must be effected in foreign exchange appropriate to the country of the recipient.

Imports. There are no import licenses but payments outside Ethiopia for imports require exchange licenses. These exchange licenses are in principle issued for “soft currencies” and only for import of goods declared as essential. Exchange licenses are also issued in “hard currency” but only for essential goods which cannot be obtained from countries with “soft currency”. Exchange licenses are issued in accordance with priority groups: essentials and various consumer goods.

Invisibles. Payments abroad require exchange licenses. Persons traveling abroad are granted exchange on an annual limit basis in the currency of the country of destination. They may take with them a maximum of Eth$150 in Ethiopian banknotes. Exchange for such purposes as charity and maintenance is granted in moderate amounts to residents not permanently domiciled in Ethiopia for remittances to their own country. Exchange for education is granted to permanent and temporary residents based on documentary evidence of necessity and amount. The transfer abroad of dividends and other current earnings due to nonresidents is allowed within limits.

Capital. The transfer of capital requires approval. Foreign exchange is granted for repayments abroad in respect of matured capital obligations of temporary residents.

Exchange Receipts

Exports. All commodities require export permits. The exchange proceeds of all exports must be received in appropriate foreign exchange and surrendered. The proceeds of exports of coffee and goatskins must be obtained in U.S. dollars.

Invisibles. Exchange receipts must be surrendered. Persons may bring in a maximum of Eth$150 in Ethiopian banknotes. All foreign exchange must be declared by travellers on entry and its subsequent use or re-export is subject to license.

Capital. Foreign exchange receipts from capital must be surrendered.

Changes during 1951

No significant change in the exchange control system took place.

Finland

Date of Introduction

October 26, 1939. Revised April 23, 1948.

Nature of Restrictive System

Restrictions are exercised through licenses required for all imports and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses.1 Foreign exchange must be surrendered. All exports, except round timber,2 require licenses.

Exchange Rates

Par value: Markka 230=US$1. Official rates: buying Fmk 229, selling Fmk 231 per US$1.

Exchange Payments

Imports. All imports require import licenses. For certain goods, licenses are issued freely provided payment is to be made in Czechoslovak korunas, Danish kroner, French francs, Netherlands guilders, Norwegian kroner, pounds sterling, Swedish kronor, or in Argentine, Polish or West German clearing-account dollars.3 Exchange is automatically granted for authorized imports.

Invisibles. Payments abroad require licenses. Residents traveling to certain countries are freely granted certain amounts in the appropriate currencies. Persons traveling abroad may take with them a maximum of Fmk 30,000 in Finnish banknotes per month.

Capital. Transfers of capital require approval.

Exchange Receipts

Exports. All exports, except round timber,4 require licenses. Exchange receipts must be surrendered.

Invisibles. Exchange receipts from invisibles must be surrendered. Persons may bring in a maximum of Fmk 30,000 in Finnish banknotes per month.

Capital. The investment of foreign capital requires approval. Exchange receipts from capital must be surrendered.

Changes during 1951

March

The allowance of foreign exchange for travel in certain European countries was increased.

June 11

A tax of 30 per cent on exchange for travel purpose was imposed.

June 27

The par value of the Finnish markka was established with the International Monetary Fund at Fmk 230 per U.S. dollar.

December

A list of goods was published showing items for which import licenses would be freely issued provided payment was to be made in Czechoslovak korunas, Danish kroner, French francs, Netherlands guilders, Norwegian kroner, pounds sterling, Swedish kronor, or in Argentine, Polish, or West German clearing-account dollars.5

December 13

The amount of Finnish banknotes which could be taken out or brought in by travelers was raised from Fmk 20,000 to Fmk 30,000 per month.

December 31

The tax of 30 per cent on exchange for travel purposes lapsed.

France

Date of Introduction

September 9, 1939. Last major revision September 20, 1949.

Nature of Restrictive System

Restrictions are exercised through licenses required for some imports from certain countries and for most imports from all other countries, and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange derived from exports and invisibles in currencies quoted in the official markets, with certain exceptions, must be sold in those markets. Some exports require licenses.

Exchange Rates

No par value for the French Franc. There are two types of exchange rates: (1) fluctuating market rates for authorized transactions in Belgian francs, Canadian dollars, Djibouti francs, Portuguese escudos, Swiss francs, and U.S. dollars; the rate for the U.S. dollar remained between fr 349 and fr 350 per U.S. dollar during 1951; (2) official rates for other currencies dealt with in France calculated on the basis of their official U.S. dollar rate multiplied by the monthly average of the U.S. dollar rate in the French free market; such rates are officially altered if the free market quotation of the U.S. dollar exceeds certain percentage fluctuations. For the currencies of Czechoslovakia, Denmark, Egypt, Italy, Mexico, Netherlands, Norway, the Sterling Area, Sweden, Western Germany, and Yugoslavia, the authorized banks may deal with one another in an official market at rates between the official buying and selling rates for these currencies.

Exchange Control Territory

The French Franc Area is constituted by:

1. Metropolitan France (including Corsica), the Principality of Monaco, the Territory of the Saar, French départements overseas (Algeria, Guadeloupe, Martinique, Guiana, Réunion), and the Protectorates of Morocco and Tunisia;

2. French West Africa; French Equatorial Africa; Trust Territories of Cameroon and Togo; Madagascar and its dependencies; Comoro Islands; St. Pierre and Miquelon ;

3. French Establishments in India;

4. Associated States of Cambodia, Laos, and Vietnam;

5. New Caledonia and dependencies; French Establishments in Oceania; the Condominium of New Hebrides.

Local currencies of these territories are pegged to the French franc at a fixed parity. French Somaliland is outside the French Franc Area and maintains no exchange restrictions. Transactions within the Area are formally subject to exchange controls; however, restrictions are either not applied, or are applied only to minor parts of the Area. Foreign exchange reserves of the French Franc Area are managed centrally.

Exchange Payments

Foreign exchange in currencies quoted in the free and official markets is obtained in those markets. Payments to nonresidents must normally be made in appropriate foreign exchange or by crediting an appropriate nonresident account in francs.

Imports. Some imports from EPU countries and their associated territories1 and most imports from all other countries require import licenses.2 All other imports are free of license. Exchange is automatically granted for authorized imports.

Invisibles. Payments abroad require licenses which are granted for most invisibles. Persons traveling abroad may take with them a maximum of fr 50,0003 in French banknotes. In addition, residents traveling abroad and in possession of a valid passport are granted certain amounts in the appropriate currencies.

Capital. All transfers of capital require approval. The proceeds of the liquidation of investments made in certain currencies after September 1, 1949 may be freely repatriated in appropriate exchange. Assets and balances held in France by nonresidents and appearing to the credit of “capital” accounts may be transferred between residents of the same country or monetary area or utilized for specified expenses and investments in France.

Exchange Receipts

Exchange receipts must be obtained in appropriate foreign exchange or from appropriate nonresident accounts when the French franc is the currency of payment. With certain exceptions, exchange receipts from exports and other commercial transactions in currencies quoted in the free and official markets must be sold in those markets.

Exports. Some exports require licenses. Three per cent of the proceeds of exports to Mexico and Peru payable in the prescribed way, or of the proceeds of exports payable in Canadian dollars, Djibouti francs, or U.S. dollars or through debiting a free franc account related to French Somaliland or the dollar area4 are credited to appropriate accounts (EFAC accounts) with authorized banks at the free disposal of the exporter for his own use. Twelve per cent of the proceeds of exports settled as indicated above and 10 per cent of the proceeds of exports settled in any other currency or through other nonresident accounts can be retained by exporters on EFAC accounts to cover incidental expenses connected with the maintenance and expansion of their export business.

Invisibles. Hotels and similar institutions dealing with foreign tourists are permitted to retain a percentage of exchange proceeds under conditions similar to those applicable to exporters. There is no limit on the amount of French banknotes which may be brought into France by travelers.

Capital. Foreign exchange receipts of residents derived from capital are not subject to surrender.

Foreign Banknotes

Authorized banks in France are permitted to purchase foreign banknotes as follows: (1) Those expressed in Belgian francs, Canadian dollars, Djibouti francs, Portuguese escudos, Swiss francs, and U.S. dollars can be purchased without limit as to amount and on the basis of the rate of exchange in the free market on the previous working day. Authorized banks acquiring more than their current needs of these banknotes can sell them to other authorized banks or to the Bank of France. (2) Those expressed in Italian lire and not of a denomination higher than Lit 1,000 can be freely purchased at the official market rate, and sold to other authorized banks or to the Bank of France. (3) Those expressed in other currencies can be purchased without limit as to amount and can be sold to other authorized banks at the existing market rates for such notes.

Authorized banks may sell foreign banknotes to residents traveling to the country of issue of such notes within the limits of a general license or of an individual license issued by the exchange control authority up to the amount which travelers are permitted to import into the country they are visiting.

Nonresident Accounts

Nonresident accounts are denominated according to the country or monetary area of the account holder. They can be freely debited for (1) payments in the French Franc Area, including payment for exports; (2) conversion in the free or official market into the currency (not banknotes) of the country of the account holder; (3) transfers to other nonresident accounts related to the same country or monetary area.

These accounts can be freely credited with (1) the proceeds of the sale in the free market of U.S. dollars (including banknotes), (2) the proceeds of the sale in the free or official market of the currency (excluding banknotes sold on the official market) of the same country or monetary area as the account to be credited, (3) transfers from Free Franc Accounts (accounts related to residents of the French Somali Coast and the dollar area)5, (4) transfers from Nonresident Accounts (i.e., those not designated as Free Franc Accounts) of the same country or monetary area Nonresident Accounts, (5) income and repayments (not anticipated) due to the account holder on securities held by the authorized bank for the account holder, and (6) interest on the account.

Changes during 1951

January 1

The nomenclature and procedure concerning the accounts of nonresidents were simplified and codified.

February 12

The Exchange Stabilization Fund would no longer provide authorized banks with the counterpart of importers’ and exporters’ forward exchange transactions.

March 1

A simplified and codified licensing and exchange control procedure applicable to exports and imports was brought into operation.

March 7

Balances as at March 6, 1951 on capital accounts could be, until April 15, 1951, freely transferred to ordinary nonresident accounts of the same country.

June 2

All banknotes other than those expressed in Belgian francs, Canadian dollars, Djibouti francs, Italian lire, Portuguese escudos, Swiss francs, and U.S. dollars could be bought by authorized banks and negotiated among themselves in any amount at any rate.

June 17

The regulations governing the special accounts for the retained precentage of export proceeds were codified.

June 19

Transfers between nonresident accounts of different nationalities related to EPU countries again became subject to license. Authorized banks were permitted to allow such transfers provided the payment was in respect of a current transaction and the account to be credited did not relate to Belgium, Portugal, or Switzerland.

July 1

The exchange allocation for travelers to Switzerland residing in départements adjacent to Switzerland was limited to the equivalent of fr 50,000 quarterly, instead of for each journey as previously.

October 14

Payment for all imports from Belgium-Luxembourg and “liberated” goods from other EPU countries could be made only after the goods had been imported, unless an individual license was obtained. In the case of advance payment for imports from Belgium-Luxembourg, the French exchange control authority would not grant such a license, unless the Belgian exchange control authorities had already given their approval to the proposed payment.

October 31

Exports to Argentina exceeding fr 50,000 in value were made subject to an individual license from the exchange control authority.

November 4

Payment for imports of “liberated” goods from EPU countries other than Belgium-Luxembourg could again be made either before or after the goods were imported.

The special accounts for the retained percentage of export proceeds could no longer be used to purchase securities abroad without a license.

November 5

Modifying the regulation of June 19, 1951, transfers between nonresident accounts of different nationalities related to EPU countries now required an individual license from the exchange control authority.

The exchange allowance for noncommercial travel to Belgium, Italy, Portugal, and Switzerland was limited to fr 50,000 per calendar year instead of for each journey as previously. Reduced limits were also laid down for business travel to those countries.

December 18

Exchange for travel purposes would be granted only to residents in possession of valid passports.

December 19

Exchange exceeding Sw fr 50 per calendar year for noncommercial travel to Switzerland for residents in départements adjacent to Switzerland was made subject to an individual license from the exchange control authority.

Greece

Date of Introduction

September 28, 1931. Last major revision June 1, 1951.

Nature of Restrictive System

Restrictions are exercised through licenses required for all imports and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange must be surrendered. All exports require licenses.

Exchange Rates

No par value for the Drachma. Official rates: buying Dr 14,940, selling Dr 15,060 per US$1.

Exchange Payments

Imports. All imports require import licenses granted in accordance with an import licensing schedule. Exchange is automatically granted for authorized imports. Certain imports may be effected on a barter basis by special license and by compliance with special regulations.

Invisibles. Payments abroad require licenses. Foreign exchange is freely granted for expenses incidental to authorized trade transactions. Persons traveling abroad may take with them a maximum of Dr 50,000 in Greek banknotes.

Capital. Transfers of capital abroad require approval. Interest and amortization service of Greek securities is suspended.

Exchange Receipts

Exports. All exports require licenses, mainly for the purpose of ensuring the surrender of exchange receipts in the appropriate currency. Exchange proceeds of exports must be surrendered. The import rights derived from barter exports are transferable by compliance with certain regulations.

Invisibles. Exchange receipts from invisibles must be surrendered. Persons may bring in a maximum of Dr 50,000 in Greek banknotes.

Capital. The investment of foreign capital requires approval whenever future repatriation and/or service thereon is intended. Exchange receipts from capital invested abroad must be surrendered.

Changes during 1951

January 29

Liberalization measures permitting the import of certain goods without quantitative restrictions were suspended, and the import of these goods was made subject to import licensing.

June 1

The exchange certificate system introduced October 19, 1947 was abolished. The price of certificates was incorporated into the official rates, leaving the effective rates still either side of Dr 15,000 per U.S. dollar.

August 18

A Ministerial Decision was issued recapitulating (with slight amendments) the regulations governing the import and export of gold and gold coins. The import of gold was subject to license. Gold coins could be imported by travelers and re-exported on departure subject to customs declaration being made at the time of entry. Other exports of gold could be made only by the Bank of Greece.

October 22

Special credit facilities were made available for importers of specified essential goods.

Hong Kong

Date of Introduction

September 8, 1939. Last major revision August 21, 1948.

Nature of Restrictive System

Restrictions are exercised through licenses required for imports of certain commodities or from certain countries, through licenses required for nontrade payments, and through a multiple currency practice consisting of a free market, mainly in U.S. dollars. Foreign exchange, with certain important exceptions, must be surrendered. Certain exports require licenses.1

Exchange Rates

Par value: Hong Kong Dollars 5.71429=US$1. Agreed (official) merchant rates (December 31, 1951): Sterling—buying Is. 3 l/32d., selling Is. 2 15/16d. per HK$1; U.S. dollar—buying HK$5.714, selling HK$5.797 per US$1. Free market rate currently around HK$6.60 per US$1. All transactions in pounds sterling against Hong Kong dollars are effected at the official rates (see Table of Exchange Rates below).

Exchange Payments

Imports. A few specified imports from China, Indo-China, Indonesia, Macao, the Philippine Republic, the Sterling Area, Thailand, and the United States require import licenses. Other imports from these territories are free of license. Imports from other countries require import and exchange licenses. Foreign exchange, other than U.S. dollars, in payment for authorized imports may be obtained at the rate corresponding to the HK$5.797 rate. U.S. dollar exchange at the HK$5.797 rate is normally authorized only for a few imports regarded as strictly essential. For other authorized imports payable in U.S. dollars, foreign exchange must be obtained in the free market.

Invisibles. Payments at the HK$5.797 rate require licenses. Payments may be freely effected through the free market by holders of Hong Kong dollars. All transfers to other parts of the Sterling Area require licenses except for dividend and interest payments which are freely permitted.

Capital. Transfers of capital in currencies other than U.S. dollars may be effected at the HK$5.797 rate but they require licenses. Transfers of capital may be freely effected through the free market by holders of Hong Kong dollars but all transfers to other parts of the Sterling Area require licenses.

Exchange Receipts

Exports. The export of certain strategic articles to any destination requires a license. Payment for exports must be collected by one of the methods, prescribed by regulations, appropriate to the country of destination of the goods. The U.S. dollar proceeds of most Hong Kong exports originating in China, Hong Kong, Macao, or Korea are freely disposable. The U.S. dollar proceeds from exports originating in other countries must be entirely surrendered. The U.S. dollar export proceeds of (1) cotton yarn, (2) lead, silver (subject to prior permission), and tin, (3) coffee, and (4) wood oil, originating in China, Hong Kong, Macao, or Korea, must be surrendered to the extent of 50 per cent, 25 per cent, 20 per cent, and 15 per cent, respectively. The remaining percentage may be sold in the free market. Exchange proceeds in other currencies from exports to countries other than China, Korea, Macao, and the Sterling Area must be received in foreign exchange appropriate to the country of destination and surrendered. All exchange proceeds from exports to China, Korea, Macao, and the Sterling Area are freely disposable.

Invisibles. The receipt of transfers from other parts of the Sterling Area requires permission, unless in respect of dividends or interest. The surrender of exchange receipts from invisibles is not always insisted upon.

Capital. The receipt of capital from other parts of the Sterling Area requires permission. The surrender of exchange receipts from capital is not always insisted upon.

Nonresident Accounts

Credits to the accounts of banks situated outside the Sterling Area, China, and Macao require licenses. Payments from these accounts may be made to residents of Hong Kong, including payments for exports to the respective countries invoiced in Hong Kong dollars. Credits to the accounts of persons and firms resident in the North American continent and the Philippine. Republic require licenses. Credits to such accounts of other countries do not require licenses. All transfers between Hong Kong and other Sterling Area territories require licenses.

Table of Exchange Rates (as at December 29, 1951)(sterling per Hong Kong dollar or Hong Kong dollars per U.S. dollar)
BuyingSelling
Is. 3 1/32d.All transactions in sterling against Hong Kong dollars. (Rates for non-dollar currencies are based on sterling rate.)1s. 2 15/16d.

or
All transactions in Hong Kong dollars against sterling.
HK$5.714Exports not originating in China, Hong Kong, Macao, and Korea payable in U.S. dollars.HK$5.797 as appropriateA few essential imports payable in U.S. dollars. Authorized invisibles and capital. All non-dollar imports.
HK$6.157

(50% at the H K $5.714 rate and 50% at the Free Market Rate)
Cotton yarn exports.1
HK$6.378

(25% at the HK$5.714 rate and 75% at the Free Market Rate)
Lead, silver, and tin exports.1
HK$6.423

(20% at the HK $5.714 rate and 80% at the Free Market Rate)
Copper exports.1
HK$6.467

(15% at the HK$5.714 rate and 85% at the Free Market Rate)
Wood oil exports.1
HK$6.600

(approx.) (Fluctuating Free Market Rate)
All other exports. Invisibles and capital.HK$6.600

(approx.) (Fluctuating Free Market Rate)
All other imports payable in U.S. dollars. Other invisibles and capital.

Changes during 1951

June 25

The import and export to any destination of goods on a list of strategic materials became subject to license.

October 2

It was announced that trade between Hong Kong and Japan would be conducted exclusively on a sterling basis and that the previously-existing Open Account arrangements would be brought to a close.

Iceland

Date of Introduction

October 2,1931. Last major revision March 8,1951.

Nature of Restrictive System

Restrictions are exercised through licenses required for certain imports, through licenses required for nontrade payments, and through a multiple currency practice consisting of premiums payable for exchange certificates required for specified imports; imports are prohibited if they have not been paid for or exchange has not been secured through an Icelandic bank before shipment. Foreign exchange must be surrendered. A multiple currency practice results on the buying side from the distribution to certain exporters of the premiums obtained from certain importers. All exports require licenses.

Exchange Rates

Par value: Icelandic Krónur 16.2857 = US$1. Official rates: buying IKr 16.26, selling IKr 16.32 per US$1. The negotiation of import and exchange certificates at fixed prices produces other effective rates (see Table of Exchange Rates below).

Exchange Payments

Imports. Imports, regardless of other requirements, can be effected only if they have already been paid for or cover has been secured through an Icelandic bank before shipment. Certain imports require import and exchange licenses, which are issued in combined form. Specified goods can be imported from any source without such licenses. Certain goods may also be imported without such licenses from EPU and clearing agreement countries, as can also a few items from dollar area countries, with certificates derived from the proceeds of certain exports—products of the small fishing boat industry, except cod-liver oil, herring and herring products.1 Such certificates are acquired through the payment of a premium according to the country from which the import is to be obtained: 60 per cent of the nominal value in the case of imports from EPU and dollar area countries and 25 per cent for imports from clearing countries. 2

Invisibles. Payments abroad require licenses. Foreign exchange is freely granted for expenses incidental to trade transactions. Residents traveling abroad may take with them a maximum of IKr 150 in foreign banknotes and coins.

Capital. Transfers of capital require approval, which is granted only in exceptional circumstances.

Exchange Receipts

Exports. All exports require licenses. Exchange receipts must be surrendered, and exporters of products of the small fishing boat industry, except codliver oil, herring and herring products, obtain, in addition, a certificate nominally equivalent to 50 per cent of the exchange surrendered, which can be exchanged for another certificate valid for certain imports or can be sold at a fixed premium for use by importers. This premium is 60 per cent for exports to EPU and dollar area countries and 25 per cent for exports to clearing countries. A commission is deducted making the net premiums paid 59 per cent and 24 per cent respectively.

Invisibles. Exchange receipts from invisibles must be surrendered. Shipowners and insurance companies are permitted to use a portion of their exchange earnings for operating purposes.

Capital. Exchange receipts from capital must be surrendered.

Table of Exchange Rates (as at December 31, 1951)(Icelandic krónur per U.S. dollar)
BuyingSelling
16.26Other exports. Invisibles. Capital.16.32Other imports. Invisibles. Capital.
18.22

(IKr 16.26 plus 24% premium on half the amount)
Exports to clearing agreement countries of most products of small fishing boat industry.
20.39

(IKr 16.32 rate plus 25% premium)
Listed imports from clearing countries.
21.07

(IKr 16.26 plus 59% premium on half the amount)
Exports to EPU and dollar area countries of most products of small fishing boat industry.
26.09

(IKr 16.32 rate plus 60% premium)
Listed imports from EPU and dollar area countries.

Changes during 1951

March 8

Exporters of products of the small fishing boat industry, except codliver oil, herring and herring products, could obtain in respect of exports to EPU countries, a transferable import certificate up to 50 per cent of the exchange surrendered permitting the import of goods on a “conditional” free list from any EPU or clearing agreement country or of a few listed commodities from the dollar area. A 50 per cent premium was payable on such imports from EPU and dollar area countries and 25 per cent on imports from clearing countries.

April 6

The list of goods which would be imported from any source without an import or exchange certificate was considerably extended.

April 11

In connection with the special arrangements for exporters of products of the small fishing boat industry, the certificates issued to such exporters had to be exchanged for certificates of another type in order to enable the import to be effected. The premium to be paid by buyers of certificates was fixed at 60 per cent of the nominal value for imports from EPU and dollar area countries and 25 per cent for imports from clearing countries.

April 17

Modifying the arrangements for exporters of products of the small fishing boat industry (see March 8 above), certain of the listed goods could now be imported only from countries with which Iceland has a bilateral or other clearing agreement, namely Austria, Czechoslovakia, Finland, Hungary, Israel, Poland, and Spain.

July 13

The list of goods which could be imported from any source without an import or exchange certificate was again extended.

August 23

Aircraft propellers and spare parts were withdrawn from the “conditional” free list.

September 21

A few goods which could be imported from dollar area countries were added to the “conditional” free list.

India

Date of Introduction

September 3, 1939. Last major revision August 14, 1947.

Nature of Restrictive System

Restrictions are exercised through import prohibitions, through licenses required for nonprohibited imports, and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange from exports must be surrendered. Exchange receipts from invisibles and capital in Philippine pesos and U.S. dollars must be surrendered. Some exports require licenses.

Exchange Rates

Par value: Indian Rupees 4.76190 = US$1. Official rates: buying Rs 4.765, selling Rs 4.805 per US$1.

Exchange Control Territory

There are no exchange restrictions on transactions with Nepal, Tibet, and the French and Portuguese possessions in India. For most exchange control purposes, nationals of Nepal and Tibet are regarded as residents of the exchange control territory of India.

Exchange Payments

Payments to Sterling Area territories other than Pakistan must be made in the currency of a territory in the Sterling Area. Payments to Pakistan must be made in Pakistan or Indian rupees. Payments to outside the Sterling Area must be effected either in the foreign exchange appropriate to the country of the recipient or by crediting the appropriate sterling or rupee account of a nonresident.

Imports. Certain imports from “hard currency” countries1 and all imports from the Union of South Africa are prohibited. Most imports require import licenses. A few imports are freely permitted from all countries except the Union of South Africa. Some imports are freely permitted from all countries other than “hard currency” countries and the Union of South Africa. Exchange is automatically granted for authorized imports.

Invisibles. Payments abroad require licenses. Foreign exchange is freely granted for expenses incidental to trade transactions, transfers abroad of dividends and other earnings due to nonresidents. Foreign exchange for family maintenance is granted for remittances to Pakistan and to residents who are not permanently domiciled in India for remittances to their own country. Foreign exchange is not granted for travel (other than for business purposes) to the Philippines and the continent of America, with the exception of Brazil, Chile, Paraguay, Peru, and Uruguay. Exchange for travel to Brazil, Chile, Paraguay, Peru, and Uruguay requires a license. Residents traveling to other countries are freely granted certain amounts in the appropriate currencies.

Capital. Transfers of capital require approval. Transfers due to persons residing in other parts of the Sterling Area (other than Pakistan), Denmark, Norway, and Sweden are freely authorized. Capital owned by residents of countries other than Sterling Area or Scandinavian countries invested after January 1, 1950 in projects approved by the Government can be repatriated to the extent of the original rupee investment and to the extent of profits ploughed back with the approval of the Government. Capital transfers are authorized in limited amounts in cases of emigration.

Exchange Receipts

Exports. Certain commodities, mostly of a type essential to the national economy, require export licenses. The exchange proceeds of all exports must be received (1) in appropriate foreign exchange, (2) in sterling from an account appropriate to the country of destination, or (3) in rupees from the account of a bank in the country of destination of the export. Receipts in foreign exchange must be surrendered.

Invisibles. Exchange receipts from invisibles in Philippine pesos and U.S. dollars must be surrendered. All other exchange may be retained but its disposal requires a license.

Capital. Exchange receipts from capital in Philippine pesos and U.S. dollars must be surrendered. All other exchange may be retained but its disposal requires a license. The investment of foreign capital requires approval. If the investment is in a project approved by the Government of India, a guarantee of subsequent repatriation is given. Exchange receipts from foreign capital investment are required to be surrendered.

Nonresident Accounts

Nonresident accounts (see Exchange Control Territory above) of firms and individuals can be freely credited and debited with certain small amounts, but approval is required for all other entries. The nonresident accounts of banks are freely available (1) for transfer to other banks in the same country or monetary area, (2) for payment to residents of India for exports to the country or monetary area where the bank is located, and (3) for other payments to residents in India not exceeding Rs 20,000. All other payments from these accounts are subject to license.

Changes during 1951

February 27

All financial transactions with Afghanistan and Pakistan became subject to exchange control. The Reserve Bank of India announced official rates for the Pakistan rupee.

March 9

All “soft currency” and general import licenses were made valid for imports from Pakistan and two existing Open General Licenses were extended to cover imports from Pakistan.

March 13

Import licenses issued for the period January-June 1951 were, for most goods, doubled in value, and this period of validity was extended by six months to cover the period July-December 1951. An existing Open General License permitting certain imports without limit as to amount from any country (except the Union of South Africa) until June 30, 1951 was extended to December 31,1951, and the list of goods to which this applied was also extended.

April 25

The basic exchange allowance for personal travel in “soft currency” countries was raised from £450 per three years to £600 per two years.

June 12

An Open General License was issued permitting until June 30, 1952 the import of a range of essential goods without limit as to amount from any country except the Union of South Africa.

June 15

Those import licenses entitled to be doubled in value (see March 13 above) were deemed to be automatically valid for additional imports up to 10 per cent of the value of the original January-June 1951 license.

October 17

Exports to Iran could be made only against advance payment or the opening of an irrevocable letter of credit.

October 21

Japan ceased to be regarded as a “hard currency” country.

December 15

Moderate remittances to Pakistan for family maintenance were permitted.

December 17

Official rates for the U.S. dollar and certain other non-sterling currencies, which are based on the official rates in London, and which had been stable since September 1949, began to fluctuate in accordance with the fluctuations within official limits inaugurated in the United Kingdom at this time.

Iran

Date of Introduction

February 1930. Last major revision December 27, 1951.

Nature of Restrictive System

Restrictions are exercised through import prohibitions, licenses required for certain nonprohibited imports, licenses for nontrade payments, and through a multiple currency practice resulting from a fluctuating exchange certificate rate. Foreign exchange must be surrendered. A multiple currency practice results on the buying side from the application of a fluctuating exchange certificate rate in addition to the official rate.

Exchange Rates

Par value: Rials 32.25 = US$1. Official rates: buying Rls 32.00, selling Rls 32.50 per US$1. The exchange certificate market yields a fluctuating rate applicable to most trade transactions (see Table of Exchange Rates below).

Exchange Payments

Imports. Imports of nonessential goods and certain goods of a type produced locally are prohibited. Payments for government imports are effected at the Rls 32.50 rate. Certain essential goods can be imported free of license, while other nonprohibited goods require a special license from the Exchange Control Committee. Importers must obtain exchange certificates from exporters at the fluctuating exchange certificate rate, currently yielding an effective rate of Rls 64.75 per US$1. Where imports are financed by letters of credit, an advance deposit of 100 per cent of the total value of the credit must be made.

Invisibles. Payments abroad require licenses. Authorized payments in respect of medical and educational expenses of Iranians already residing abroad are made at the Rls 32.50 rate. Persons traveling abroad may take with them a maximum of Rls 1,000 in Iranian banknotes.

Capital. Transfers of capital require approval.

Exchange Receipts

Exports. Exports of nonprohibited goods do not require licenses, but exporters must undertake to surrender the proceeds. Proceeds of exports must be surrendered at the Rls 32 rate and, in addition, an exchange certificate, which can be sold in a free market, is issued for the amount surrendered.

Invisibles. Exchange receipts from invisibles must be surrendered at the Rls 32 rate. Persons may bring in a maximum of Rls 1,000 in Iranian banknotes.

Capital. Exchange receipts from capital must be surrendered at the Rls 32 rate. The investment of capital by foreign-owned companies may, under special arrangements, obtain a transfer guarantee.

Table of Exchange Rates (as at December 31, 1951)(rials per U.S. dollar)
BuyingSelling
32.00Invisibles. Capital.32.50Government payments. Medical and educational expenses of Iranians abroad.1
64.25

(Rls 32.00 rate plus Fluctuating Exchange Certificate Rate)
All exports.64.75

(Rls 32.50 rate plus Fluctuating Exchange Certificate Rate)
Authorized imports.

Changes during 1951

January 14

The deposits required by official regulation to establish letters of credit in respect of import payments were raised from 50 per cent to 80 per cent for essential goods and 100 per cent for nonessential goods.

February 19

The deposits officially required to establish import letters of credit were reduced to 30 per cent for machinery imports and 50 per cent for all other goods.

April 19

Import quotas, valid until March 20, 1952, were re-introduced—the number of items requiring quota registration before payment was effected was reduced from 49 to 20.

June 4

The deposits officially required to establish import letters of credit were raised to 75 per cent.

June 25

The rate at which export proceeds must be surrendered was lowered from Rls 48.25 to Rls 46.75. The rates for exchange in payment of essential and other authorized imports were changed from Rls 40.00 to Rls 41.50 and from Rls 48.75 to Rls 47.25, respectively.

July 7

The deposits officially required to establish import letters of credit were raised to 100 per cent.

Tea, ironware, chemical dyes, and electrical appliances, previously classified as essential imports, were re-classified as non-essential.

September 11

Commercial foreign exchange transactions in respect of dollar imports were suspended. In respect to the Sterling Area, foreign exchange transactions were limited to a few essential items.

December 4

The fixed exchange certificate rates were suspended and a fluctuating rate took its place. Exchange for imports could be obtained at the official rate from the central bank provided the importer surrendered an exchange certificate obtained from exporters in the free market.

December 27

Imports were limited to 36 essential items.

Iraq

Date of Introduction

November 24, 1941. Major revision, August 1950.

Nature of Restrictive System

Restrictions are exercised through import prohibitions, import quotas allocated to individual importers, and licenses required for nontrade payments; exchange is granted for imports unless the license specifies otherwise. Foreign exchange, other than Sterling Area currencies, arising from exports must be surrendered. Exchange receipts from invisibles and capital in Swiss francs and U.S. dollars must be surrendered. A few exports require licenses.

Exchange Rates

Par value: Iraqi Dinar 1 = US$2.80. Official rates: buying US$2.80875, selling US$2,785 per ID 1.1

Exchange Payments

Payments to other parts of the Sterling Area must be effected in a currency of the Sterling Area. Payments to outside the Sterling Area must be effected either in foreign exchange appropriate to the country of the recipient or by crediting the appropriate sterling account of a nonresident.

Imports. Certain imports are prohibited. All other imports require import licenses. These are granted to importers up to the amount of their individual import quotas. Certain items may be imported from “scarce currency” countries2 by owners of registered factories provided the goods are not available in “soft currency” countries. Exchange is automatically granted where the import license specifies the allocation of exchange. For certain goods, import licenses are issued on the understanding that the importer provides his own exchange.

Invisibles. Payments to outside the Sterling Area require licenses. Foreign exchange is freely granted for expenses incidental to trade transactions. Foreign exchange is freely granted to foreign nationals resident in Iraq, up to certain limits, for the purposes of family maintenance and foreign travel.

Capital. Transfers of capital to outside the Sterling Area require approval.

Exchange Receipts

Exports. Certain exports are prohibited, while exports of essential goods in short supply require licenses. The exchange proceeds of all exports to outside the Sterling Area must be received (1) in acceptable foreign exchange, (2) in sterling from an account appropriate to the country of destination, or (3) in the case of a limited number of non-Sterling Area countries, in Iraqi currency from a nonresident account. Foreign exchange proceeds in other than Sterling Area currencies must be surrendered.

Invisibles. Exchange receipts from invisibles in Swiss francs and U.S. dollars must be surrendered.

Capital. Exchange receipts from capital in Swiss francs and U.S. dollars must be surrendered.

Changes during 1951

January 11

A list was published of 48 commodities whose import was prohibited.

February 19

Argentina and the Portuguese Monetary Area were removed from the list of “scarce currency” countries, in which only Canada and the American Account countries remained.

June 27

Foreign exchange for traveling, living, and medical expenses by residents wishing to travel outside Iraq was to be granted to the extent of ID 100 per person per month for not more than three months in any one year.

August 15

Authorized dealers could no longer purchase their U.S. dollar requirements directly from London but only through the National Bank of Iraq.

November

Certain essential commodities could be imported free of import license.

Italy

Date of Introduction

September 29, 1931. Revised September 19, 1949.

Nature of Restrictive System

Restrictions are exercised through licenses required for a few imports from certain countries and for most imports from all other countries, and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange in U.S. and Canadian dollars must be 50 per cent surrendered; the remaining 50 per cent must be used by holders for authorized payments or sold on the free market. Foreign exchange in other currencies must be entirely surrendered. Many exports require licenses.

Exchange Rates

No par value for the Italian Lira. There are market rates for the U.S. dollar. All import transactions in U.S. dollars are conducted at the market rate. The dollar proceeds of exports are 50 per cent surrendered and 50 per cent credited to exchange accounts negotiable at the market rate. The averages of the closing market rates for the U.S. dollar on the Rome and Milan exchanges are recognized as the official rates. Owing to the stability of the market rate, effective rates for export and import transactions are practically identical (during 1951 the rate for the U.S. dollar remained between Lit 624 and Lit 625 per U.S. dollar). Rates for all other currencies are fixed on the basis of the official U.S. dollar rate in Italy and the official U.S. dollar rate in the respective country.

Exchange Control Territory

The Free Territory of Trieste and the Republic of San Marino are included in the exchange control territory of Italy.

Exchange Payments

U.S. and Canadian dollars are acquired on the free market, while foreign exchange in other currencies is acquired at the official rate (calculated on the basis of the U.S. dollar rate).

Imports. Only a few imports from EPU countries and their associated territories1 and most imports from all other countries require import licenses. All other imports are free of license. Exchange is automatically granted for authorized imports. Temporary arrangements exist by which Italian importers can borrow EPU currencies at specially reduced interest rates in order to encourage additional imports from those countries.

Invisibles. Payments abroad require licenses. Foreign exchange is freely granted for expenses incidental to trade transactions. Persons traveling abroad may take with them a maximum of Lit 30,000 in Italian banknotes in denominations not exceeding Lit 1,000. Tourists traveling to EPU countries may freely obtain exchange to the value of Lit 200,000 per person per year. Favorable treatment is accorded to earnings on investments in Italy made in freely transferable Swiss francs or in U.S. dollars.

Capital. Transfers of capital require approval. Transfers of foreign capital originally invested in freely transferable Swiss francs, or U.S. or Canadian dollars, on or after April 7, 1948 may be made as follows: (1) earnings are freely transferable in the currency originally surrendered, provided that the rate of earnings does not exceed the legal rate by 1 per cent; (2) proceeds from the liquidation of such investments may be freely transferred within the limit of the value of the capital invested, provided that such a transfer is effected after two years from the date of investment, and for each succeeding period of two years does not exceed 50 per cent of the value of the original investment; (3) proceeds of liquidation of capital goods purchased abroad with freely transferable Swiss francs, or U.S. or Canadian dollars, may be freely transferred under the same conditions as above after five years. Amounts which may not be transferred because they exceed the above-mentioned limits are credited to special accounts.

Exchange Receipts

Exchange receipts in U.S. or Canadian dollars must be 50 per cent surrendered, while the remaining 50 per cent must be used by holders for authorized payments or sold on the free market. All other exchange receipts must be entirely surrendered.

Exports. Certain exports require licenses.

Invisibles. Persons may bring in Italian banknotes in any amount but not in denominations exceeding Lit 1,000.

Capital. The investment of foreign capital requires approval. Investments made in freely transferable Swiss francs, or in U.S. or Canadian dollars, are accorded preferential treatment.

Changes during 1951

January 20

Additions were made to the list of items that could be imported without an import license.

February

The various lists of goods subject to export license were replaced by a single list containing about 650 items.

June 4

New regulations governing the importation of goods payable in pounds sterling were introduced. Imports could no longer be paid for in Australian, New Zealand, South African, or Egyptian pounds, or in rupees.

July 7

Measures were taken to make more effective exchange controls over the invoicing of exports and imports, the use of exchange allocated for imports, and the surrender of export proceeds.

August 28

Forward transactions through authorized banks in foreign exchange on an exact counterpart basis as to amount and maturity date were permitted.

September 6

Further additions were made to the list of items which could be imported without an import license.

October 8

A further list of goods from EPU countries free from import restriction became effective.

October 31

Advance payments exceeding Lit 5,000,000 in respect of exports to EPU countries, when the export would take place later than 90 days after the payment has been made, became subject to individual license being obtained from the exchange control authority.

November 1

Valid until May 1, 1952, import license requirements were lifted in respect of nearly all imports from EPU countries, and Italian importers could be provided with loans in EPU currencies at specially reduced interest rates in order to encourage additional imports from those countries.

Lebanon

Date of Introduction

December 3, 1939. Last major revision September 26, 1949.

Nature of Restrictive System

Restrictions are exercised through a multiple currency practice resulting from the use of a free market with rates differing from parity by more than 1 per cent, and through licenses required for a few imports. Foreign exchange in specified currencies from invisibles and capital, if sold, must be partially surrendered at the official rate. A multiple currency practice results on the buying side from the application of different effective rates. A few exports require licenses.

Exchange Rates

Par value: Lebanese Pounds 2.19148=US$1. Official rates: buying LL 2.19, selling LL 2.21 per US$1. The official rates and the use of a free market rate yield various effective rates (see Table of Exchange Rates below).

Exchange Payments

Imports. All imports require licenses which are restrictively applied only to a few commodities of a type produced locally. Imports are effected through the free market, currently at LL 3.80 per U.S. dollar, or with the importer’s own exchange.

Invisibles. Payments abroad may be freely effected if the remitter provides his own exchange or purchases it in the free market.

Capital. Transfers of capital abroad may be freely effected, but the remitter must provide his own exchange or purchase it in the free market.

Exchange Receipts

Exports. A few exports require licenses. Exchange proceeds are freely disposable.

Invisibles. Exchange receipts from invisibles in the specified currencies1 may be retained and used, but if sold, 10 per cent must be surrendered at the LL 2.19 rate, and the remainder may be sold in the free market.2 Earnings from summer tourism are exempt from the 10 per cent surrender requirement. Companies operating under special contract must sell at the LL 2.19 rate 80 per cent of the specified currencies to be sold, and the remainder may be sold in the free market. Exchange receipts in other currencies are freely disposable.

Capital. Exchange receipts from capital in the specified currencies may be retained and used, but if sold, 10 per cent must be surrendered at the LL 2.19 rate and the remainder may be sold in the free market.3 Exchange receipts in other currencies are freely disposable.

Table of Exchange Rates (as at December 31, 1951)(Lebanese pounds per U.S. dollar)
BuyingSelling
2.19….2.21Government payments.
2.5124

(80% at the LL 2.19 rate and 20% at the Free Market Rate)
Sales of specified currencies by companies operating under contract.
3.6395

(10% at the LL 2.19 rate and 90% at the Free Market Rate)
Invisibles (except summer tourism) and capital in specified currencies.
3.80

(Fluctuating Free Market Rate)
All exports. Earnings from summer tourism. All invisibles and capital in non-specified currencies.3.80

(Fluctuating Free Market Rate)
All other payments.

Changes during 1951

No significant changes took place during 1951.

Netherlands

Date of Introduction

May 10, 1940. Last major revision October 20, 1945.

Nature of Restrictive System

Restrictions are exercised through licenses required for most imports and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange, with certain exceptions, must be surrendered. Exports require licenses.

Exchange Rates

Par value: Netherlands Guilders 3.80=US$1. Official rates: buying f 3.795, selling f 3.805 per US$1.

Exchange Control Territory

The Netherlands and its overseas territories constitute the Netherlands Monetary Area. The Republic of Indonesia participates in several of the Netherlands monetary agreements. Current payments between various parts of this exchange control territory are effected through controlled accounts.

Exchange Payments

Imports. Most imports require import licenses. These are freely granted for most imports from EPU countries and their associated territories.1 Appropriate exchange is automatically granted for authorized imports, but payment prior to shipment requires special approval.

Invisibles. Payments abroad require licenses. Foreign exchange is freely granted for expenses incidental to trade transactions. Other exchange payments are effected either in accordance with general licenses by which exchange for certain purposes is freely granted up to certain limits in specified currencies, or with individual licenses. Residents traveling abroad may take with them a maximum of f 50 in Netherlands banknotes which must be re-imported. In addition, residents traveling to EPU countries, Finland, and Spain are granted the countervalue in the appropriate currency of f 400 per year. Nonresidents may take with them a maximum of f 100 in Netherlands banknotes.

Capital. Transfers on capital account are approved only in exceptional cases. Foreign capital invested after November 1, 1950 in manufacturing enterprises in the Netherlands by the acquisition of shares can be repatriated after three years.

Exchange Receipts

Exports. All exports require a license mainly for the purpose of insuring the surrender of exchange receipts in the appropriate currency. Foreign exchange from exports must be surrendered, but 10 per cent of the proceeds of exports to Canada and the United States2 may be retained and utilized by exporters for authorized payments.

Invisibles. Exchange receipts from invisibles must be surrendered. Companies having extensive foreign dealings may be authorized to keep accounts in foreign exchange abroad or on the books of an authorized bank in the Netherlands for operating purposes. Nonresidents may bring a maximum of f 100 in Netherlands banknotes and any amount of foreign banknotes, which may be sold only to an authorized bank or authorized exchange office.

Capital. The investment of foreign capital requires approval. A guarantee of repatriation after three years is provided for foreign capital invested after November 1, 1950 in manufacturing enterprises in the Netherlands. Exchange receipts from capital must be surrendered.

Foreign Banknotes

Authorized banks in the Netherlands are permitted to purchase, from persons coming from abroad, foreign banknotes other than United States and Swiss banknotes at rates not exceeding official ceiling rates. They are authorized to sell them under certain conditions to travelers going abroad. United States and Swiss banknotes are purchased only at official rates.

Changes during 1951

April 4

Spain was added to the list of countries in which the basic allocation of exchange for tourists was available.

May 17

Payment for imports prior to their importation became subject, with certain exceptions, to a special license. A 25 per cent deposit in guilders had to be made by purchasers of exchange for forward delivery.

November 27

The advance deposit required for forward exchange purchases was reduced from 25 per cent to 10 per cent.

December 20

The advance deposit requirement of 10 per cent for forward exchange purchases was abolished. The maximum permitted time-limit of forward contracts was reduced from 12 months to 6 months.

Nicaragua

Date of Introduction

November 13, 1931. Last major revision November 9, 1950.

Nature of Restrictive System

Restrictions are exercised through licenses for nontrade payments, and through multiple currency practices resulting from two fixed rates in addition to the official rate and from the application of various exchange taxes. Foreign exchange, with certain exceptions, must be surrendered. A multiple currency practice results on the buying side from the application of a fixed rate and a mixing rate. All exports require licenses.

Exchange Rates

Par value: Córdobas 5 = US$1. Basic official rates: buying and selling at the par value. Other buying and selling rates and the use of surcharges yield various effective rates (see Table of Exchange Rates below). Transactions in foreign notes and coins, mainly U.S. dollar notes, result in a free market rate; such foreign notes may not be exported.

Exchange Payments

Imports. All imports require licenses which are freely granted if the importer deposits in córdobas 100 per cent of the value involved and, in the case of semi-essential and non-essential imports, the appropriate exchange surcharge (see below) is paid in advance. Licenses are granted to foreign-owned companies for imports authorized in their contracts, but such imports must be paid for with their own exchange. Government imports and specified commercial obligations contracted in 1950 are effected within certain limits at the C$5.0375 rate. Essential imports are effected at the C$7.0525 rate. Semi-essential and non-essential imports are subject to surcharges of C$1 and C$3, respectively, on the C$7.0525 rate, yielding effective rates of C$8.0525 and C$10.0525 per U.S. dollar.

Invisibles. Payments abroad require licenses. Certain government payments, such as for debt service and diplomatic expenses, are made at the C$5 rate. A few specified invisibles, such as students’ expenses and insurance premiums, are effected at the C$7.0525 rate. In the case of medical treatment abroad, proven expenses are adjusted to the C$8.0525 rate. Payments for most other invisibles are effected at the C$10.0525 rate.

Capital. Transfers of capital require approval, except that foreign-owned companies may transfer their capital and earnings as stipulated by their respective contracts. Transfers of registered capital may be effected at the C$7.0525 rate and are limited to a maximum of 10 per cent annually of the investment.

Exchange Receipts

Exports. Exports require licenses which are usually granted if the exporter agrees to surrender the exchange proceeds at the C$6.60 rate (20 per cent at C$5 rate and 80 per cent at C$6.9825 or C$7 rate according to the commodity). Foreign-owned companies must surrender export proceeds at the C$6.60 rate to the extent of their local currency requirements.

Invisibles. Exchange receipts from invisibles other than foreign banknotes and coins must be surrendered at the C$6.60 rate. Foreign banknotes and coins may be sold in the free market.

Capital. Exchange receipts from capital, other than foreign banknotes and coins, must be surrendered at the C$6.60 rate. The investment or reinvestment of capital by foreign-owned companies operating under special contracts is made according to the terms of the contract.

Table of Exchange Rates (as at December 31, 1951)(córdobas per U.S. dollar)
BuyingSelling
5.00….5.0375Specified government payments. Specified commercial obligations contracted in 1950.
6.586

(20% at C$5 rate and 80% at C$6.9825)
All other exports.
6.60

(20% at C$5 rate and 80% at C$7 rate)
Exports of farm products and products derived therefrom and of certain forest products.
7.00….7.0525Essential imports. Students’ expenses. Insurance premiums. Registered capital.
7.10

(Fluctuating Free Market Rate)
Foreign notes and coins.7.20

(Fluctuating Free Market Rate)
Foreign notes and coins.
8.0525

(C$7.0525 rate plus C$1 surcharge)
Semi - essential imports. Medical expenses.
10.0525

(C$7.0525 rate plus C$3 surcharge)
Non - essential imports. Other invisibles.
Note: The C$6.86 rate is not the effective rate for coffee exports, which are subject to an export tax of US$3 per quintal, payable in foreign exchange. An additional 25 % ad valorem tax is applied on the excess when the price rises above US$50 per quintal.

Changes during 1951

January 1

Importers were required to pay the exchange surcharges on semi-essential and non-essential imports before the relative import license would be issued.

Norway

Date of Introduction

May 18, 1940. Revised November 10, 1944, and July 19, 1946. A new law embodying previous regulations was issued July 14, 1950, but has not yet been implemented.

Nature of Restrictive System

Restrictions are exercised through licenses required for some imports from certain countries and for most imports from all other countries, and through licenses required for nontrade payments to certain countries; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange must be surrendered. Exports require licenses.

Exchange Rates

Par value: Norwegian Kroner 7.14286=US$1. Official rates: buying NKr 7.135, selling NKr 7.150 per US$1.

Exchange Payments

Imports. Some imports from EPU countries and their associated territories1 and from Finland, Spain, and Israel, and most imports from all other countries require individual import licenses. Appropriate exchange is automatically granted for authorized imports.

Invisibles. Payments abroad require licenses which are freely granted for most transactions with EPU countries. For payments to other countries, appropriate exchange is granted for expenses incidental to trade transactions and for most interest and dividend payments due to nonresidents. Exchange for certain other purposes is freely granted up to certain limits in specified currencies. Persons traveling abroad may take with them a maximum of NKr 50 in Norwegian banknotes. In addition, residents traveling to EPU countries are freely granted certain amounts in the appropriate currencies.

Capital. Transfers of capital require approval. Transfers of certain capital assets on a compensatory basis to specified countries with which special agreements are in effect are freely authorized.

Exchange Receipts

Exports. Exports require licenses. Foreign exchange from exports must be surrendered.

Invisibles. Exchange receipts from invisibles must be surrendered. Shipping and insurance companies and some industrial concerns can keep accounts in foreign exchange abroad for operating purposes. Persons may bring in a maximum of NKr 50 in Norwegian banknotes.

Capital. The investment of foreign capital requires approval which is usually granted. Exchange receipts from capital invested abroad by Norwegian residents must be surrendered.

Changes during 1951

February 1

New regulations governing goods not subject to restriction as to amount when imported from EPU countries and associated territories became effective.

February 3

Additional commodities were added to the list of goods not subject to restriction when imported from EPU countries.

March 1

Authorized banks were permitted to grant exchange up to certain limits for business travel.

April 1

Spain and Spanish possessions were added to the list of countries from which the import of certain goods was not subject to restriction.

April 6

Israel was added to the list of countries from which the import of certain goods was not subject to restriction.

May 1

Further additions were made to the list of goods not subject to restriction when imported from EPU countries, their associated territories, Israel, Spain, and Spanish possessions.

Pakistan

Date of Introduction

September 3, 1939.

Nature of Restrictive System

Restrictions are exercised through licenses for most imports from certain countries and for some imports from all other countries, and through licenses required for nontrade payments. Exchange is granted for imports and for nontrade payments authorized by these licenses. Exchange receipts must in general be surrendered. Some exports require licenses.

Exchange Rates

Par value: Pakistan Rupees 3.30852 = US$1. Official rates: buying PRs 3.30, selling PRs 3.32 per US$1.

Exchange Control Territory

There are only a few exchange control requirements applicable to transactions with Afghanistan. The accounts with authorized dealers of persons resident in Afghanistan are treated as “resident”.

Exchange Payments

Payments to residents of India must be effected in Indian or Pakistan rupees. Payments to Afghanistan must be made in Pakistan rupees to the account of a resident of Afghanistan. Payments to residents of other countries must be effected either in the foreign exchange appropriate to the country of the recipient or by crediting the appropriate sterling or Pakistan rupee account of a nonresident.

Imports. Many imports from “soft currency” countries1 are free of license. Some essential items can also be imported from other countries free of license. All other imports require import licenses. Exchange is automatically granted for authorized imports.

Invisibles. Payments abroad require licenses. Foreign exchange is freely granted for expenses incidental to trade transactions, and for transfers abroad of dividends and other earnings due to nonresidents. Foreign exchange for other payments is granted up to specified limits. Residents traveling to certain countries are freely granted certain amounts in the appropriate currencies. Not more than £10 in Bank of England notes or the equivalent of PRs 50 in any foreign currency, and PRs 50 in Pakistan banknotes may be taken out of Pakistan.

Capital. Transfers of capital require approval.

Exchange Receipts

Exports. Export of certain essential items, particularly to “soft currency” countries, requires licenses. The exchange proceeds of all exports to countries outside Pakistan (other than India) must be received (1) in appropriate foreign exchange which must be surrendered, (2) in sterling from an account appropriate to the country of import, or (3) in Pakistan rupees from the account of a bank in the country of import. Payment for exports to India must be received either in Indian rupees or in Pakistan rupees from the account of a bank resident in India.

Invisibles. Exchange receipts from invisibles in Philippine pesos and U.S. dollars must be surrendered. Other exchange may in certain circumstances be retained, but its disposal requires a license. The receipt of remittances from Sterling Area countries exceeding PRs 14,000 or the equivalent requires prior approval. Bank of England notes up to £10, and Pakistan notes up to PRs 50, and other foreign currencies to an unlimited extent, may be brought into Pakistan.

Capital. Investments by persons residing outside Pakistan must be made in foreign exchange appropriate to their country or in sterling or rupees from an appropriate account. Remittances from Sterling Area territories exceeding PRs 14,000 or the equivalent require prior approval. Exchange receipts from capital in Philippine pesos and U.S. dollars must be surrendered. Other exchange may in certain circumstances be retained, but its disposal requires a license.

Changes during 1951

January 4

A new Open General License permitting certain imports free of individual license during the period January-June 1951 became effective. Certain items previously importable under open general license were made subject to individual license.

January 12

Importers of iron, steel, and machinery of all types were no longer required to make deposits when booking forward exchange with banks to cover imports of these goods in Pakistan.

January 18

Importers of goods subject to individual license were no longer required to make deposits when booking forward exchange with banks. The minimum deposit in the case of imports under open general license was reduced from 50 per cent to 25 per cent.

February 26

A list of goods which could be imported from India under open general license was published.

February 27

Remittances to and from India became subject to exchange control. Proceeds of exports to India had to be received within one month.

March

A graduated tax not exceeding 1 per cent on import and export licenses of a value exceeding PRs 4,999, initially introduced in October 1950, was further extended.

March 19

The initial par value for the Pakistan rupee was established with the International Monetary Fund at PRs 3.30852 per U.S. dollar.

The requirement of a minimum deposit of 25 per cent on forward exchange bookings by importers of goods on open general license was abolished.

April 2

The exchange proceeds of exports to countries other than India, Nepal, and Tibet had to be surrendered within four instead of six months after the date of exportation.

April 20

Importers were required to furnish certain information for purposes of registration.

June 6

The exchange proceeds of exports to India had to be surrendered in two months instead of one month after the date of dispatch of the goods.

June 27

The import by travelers of Bank of England notes up to £10 was permitted.

July 1

A new Open General License permitting certain imports free of individual license during the period July-December 1951 became effective. It enlarged the scope of a previous Open General License.

Paraguay

Date of Introduction

June 28, 1932. Last major revision March 5, 1951.

Nature of Restrictive System

Restrictions are exercised through import prohibitions, through licenses required for nonprohibited imports and certain nontrade payments, and through multiple currency practices resulting from a penalty fixed rate and a fluctuating free market rate. Foreign exchange derived from exports and certain invisibles must be surrendered. A multiple currency practice results on the buying side from the application of a fixed exchange rate (in addition to the parity rate) and a fluctuating free market rate. A few exports require licenses.

Exchange Rates

Par value: Guaraníes 6=US$1. Basic rates: buying and selling at the par value. Another official rate and a fluctuating free market yield other effective rates (see Table of Exchange Rates below).

Exchange Payments

Imports. Imports may enter Paraguay only if an exchange contract having the effect of an import and exchange license has been concluded with the Bank of Paraguay. These contracts are concluded at fixed rates for specified essential goods according to two categories:

Category I—Covers such items as cattle, wheat, drugs, salt and agricultural machinery to which the G 6.00 rate is applied.

Category II—Covers such items as foodstuffs, hardware, electrical equipment, trucks, paper, and textiles to which the G 9.00 rate is applied.

Exchange contracts are not, at present, concluded for non-essential and luxury goods, so that, in effect, their import is prohibited.

Invisibles. Payments abroad at either of the official rates require licenses. Government payments are effected at the G 6.00 rate. River freight for imports, registered insurance and reinsurance payments, and approved students’ expenses are effected at the G 9.00 rate. All other invisibles are freely effected at the fluctuating free market rate.

Capital. Transfers of registered capital require approval and are effected at the G 9.00 rate. Nonregistered capital can be freely transferred at the fluctuating free market rate.

Exchange Receipts

Exports. A few goods in short supply require export licenses. The export of strategic materials to certain countries is prohibited. Export proceeds to the extent of the officially-appraised value of the goods must be surrendered at one of two fixed official rates. The balance (if any) of such proceeds may be sold in the free market. Proceeds of basic exports, such as wood, quebracho extract, hides, cotton, and meat products, must be surrendered to the extent of the officially-appraised value of the goods at the G 6.00 rate. Proceeds of other exports must be surrendered to the extent of the officially-appraised value of the goods at the G 9.00 rate. Export taxes of 11, 16.67, or 33 per cent are deducted from the exchange proceeds of certain exports.

Invisibles. Exchange receipts from certain invisibles must be surrendered at the G 9.00 rate. Certain government receipts are converted at the G 6.00 rate. All other invisibles may be sold in the free market.

Capital. Exchange receipts from registered capital must be surrendered at the G 9.00 rate. Nonregistered capital may be sold at the free market rate.

Table of Exchange Rates

See next page.

Changes during 1951

March 5

The par value of the guaraní was raised from G 3.09 to G 6.00 per U.S. dollar. Official rates of G 6 and G 9 per U.S. dollar at which most trade transactions would take place were established. Most invisible transactions were to be made in the free market which was legalized. Taxes on sales of exchange were removed. Export taxes were raised up to 33 per cent. The import of non-essential goods was suspended.

March 7

Advance deposit requirements of up to 25 per cent applied to imports under the former exchange system were abolished for goods in Category I and amended to 15 per cent for goods in Category II.

April 2

Payments for expenses incidental to exports were to be effected through the free market.

April 3

The requirement that export taxes must be paid upon export of the goods was amended to require only 25 per cent to be paid on export and the balance when the export proceeds were received.

April 23

The advance deposit requirement of 15 per cent applicable to Category II imports was abolished.

August 16

The export of strategic materials to Communist China, North Korea, and certain other countries was prohibited.

Table of Exchange Rates (as at December 31, 1951)(guaraníes per U.S. dollar)
BuyingSelling
6.00Government receipts. Basic exports (wood, quebracho extract, hides, cotton, and meat).6.00Government nontrade payments. Category I imports.
9.00Other exports. Certain invisibles. Registered capital.9.00Category II imports. Specified invisibles. Registered capital.
31.50

(Fluctuating Free Market Rate)
Other invisibles and nonregistered capital.31.50

(Fluctuating Free Market Rate)
Other invisibles. Nonregistered capital.
Note: The above rates for exports are not the effective rates. The effective rates for export proceeds depend on the different rates of export taxes (of 11%, 16.67%, or 33% deducted from the exchange proceeds of most exports). Moreover, export proceeds in excess of their officially-appraised value are negotiable in the free market.

Peru

Date of Introduction

January 23, 1945. Last major revision November 11, 1949.

Nature of Restrictive System

Restrictions are exercised through a multiple currency practice which results from the application of an exchange certificate market for some trade transactions and a free market for other trade and most nontrade transactions. Foreign exchange from most exports must be converted either totally or partially into exchange certificates. All exports require licenses.

Exchange Rates

The initial par value of the Peruvian Sol was established on December 18, 1946. In November 1949, Peru introduced a new exchange system, but no agreement on a new par value has been reached. The exchange certificate and free markets yield fluctuating rates (see Table of Exchange Rates below).

Exchange Payments

Imports. Imports are freely permitted. Payments for most imports are effected through the exchange certificate market in which the rate is currently S/. 15.28 per U.S. dollar. Occasional imports may be effected through the free market in which the rate is currently S/. 15.36 per U.S. dollar. Exchange certificates are denominated in Argentine pesos, French francs, pounds sterling, and U.S. dollars. Importers opening documentary import letters of credit through commercial banks must make advance deposit as follows: 100 per cent of the value of non-essential imports and 50 per cent of raw material imports.

Invisibles. Payments may be freely effected through the free market. Payments for expenses incidental to trade transactions and certain other invisibles may be effected subject to approval at the exchange certificate market rate.

Capital. Transfers of capital may be effected through the free market.

Exchange Receipts

Exports. Exports of strategic materials to certain countries are prohibited. All exports require licenses which are automatically granted if the exporter agrees to convert the exchange proceeds into exchange certificates to the extent required, namely, 100 per cent if in French francs or U.S. dollars, and 10 per cent if in Argentine pesos or pounds sterling. Export proceeds may be received in Chilean pesos, which can be sold in the free market.

Invisibles. Exchange receipts from invisibles may be sold in the free market.

Capital. Exchange receipts from capital may be sold in the free market.

Table of Exchange Rates (as at December 31, 1951)(soles per U.S. dollar)
BuyingSelling
15.28

(Fluctuating Exchange Certificate Rate)
Exports (100% in French francs and U.S. dollars; 10% in Argentine pesos and pounds sterling).15.28

(Fluctuating Exchange Certificate Rate)
Most imports. Certain invisibles.
15.36

(Fluctuating Free Market Rate)
All other export proceeds. Invisibles and capital.15.36

(Fluctuating Free Market Rate)
Occasional imports. Other invisibles and capital.

Changes during 1951

January 30

The prohibited list of imports was abolished.

March 21

The percentage of export proceeds in French francs and U.S. dollars required to be converted into certificates was reduced from 100 per cent to 75 per cent.

April 13

The percentage of export proceeds in Argentine pesos and pounds sterling required to be converted into certificates was reduced to 10 per cent.

April 23

The percentage of export proceeds in French francs and U.S. dollars required to be converted into certificates was reduced from 75 per cent to 50 per cent for proceeds of dollar exports.

May 10

The percentage of export proceeds in French francs and U.S. dollars required to be converted into certificates was raised to 75 per cent.

May 16

The percentage of export proceeds in French francs and U.S. dollars required to be converted into certificates was raised to 100 per cent.

May

The validity period of the exchange certificates was reduced from 60 days to 15 days with the exception of those in pounds sterling, Argentine pesos, and other currencies not convertible into gold, the validity of which remained unchanged at 60 days.

June 5

The exportation of strategic materials to Communist China and North Korea was prohibited.

September 13

Advance deposit requirements for the opening of documentary import letters of credit were established as follows: 100 per cent of the value of non-essential imports and 50 per cent of the value of raw materials.

Philippine Republic

Date of Introduction

December 9, 1949. Last major revision March 28, 1951.

Nature of Restrictive System

Restrictions are exercised through licenses granted up to the limits of individual import quotas, through licenses required for nontrade payments, and through a multiple currency practice resulting from an exchange tax on most payments. Foreign exchange must be surrendered. All exports require licenses.

Exchange Rates

Par value: Philippine Pesos 2 = US$1. Official rates: buying ₱ 2.00375, selling ₱ 2.015 per US$1. These rates represent the official minimum buying and maximum selling rates for commercial banks applied to telegraphic transfers of US$500 and over. A tax of 17 per cent imposed on most remittances yields an effective selling rate of ₱ 2.35755 per US$1 (see Table of Exchange Rates below).

Exchange Payments

Imports. All imports require import licenses which are issued up to the limits of individual quotas computed on the basis of previous imports, essentiality of goods, and other criteria. The licensing of certain imports is on a non-quota basis. Exchange is automatically granted for authorized imports. An exchange tax of 17 per cent is imposed on payments for imports with the exception of machinery and materials for new and necessary industries. This tax is refunded in the case of imports of basic foodstuffs, fertilizers, poultry feed, newsprint, textbooks and reference books, book paper, medical, dental and hospital supplies and materials used by the importer himself in the manufacture of export products.

Invisibles. Payments abroad require licenses. Persons traveling abroad may take with them a maximum of ₱ 100 in Philippine currency. The exchange tax of 17 per cent is imposed on payments in respect of invisibles with the exception of certain insurance payments, expenses for the drydocking and repair abroad of Philippine vessels, and the living expenses of students abroad.

Capital. Transfers of capital require approval. Transfers of profits and dividends are allowed out of current earnings in an amount equivalent to 10 per cent of current net profits or capital stock outstanding as of December 31, 1949, whichever is higher; plus 30 per cent of the foreign participation in the depreciated fixed assets or in the capital stock outstanding as of December 31, 1949, whichever is higher.

Exchange Receipts

Exports. Certain exports are prohibited. Some goods may be exported without a permit from the Export Control Committee, but all exports are subject to licensing by the Central Bank or its authorized agents. The proceeds of all exports must be obtained in U.S. dollars and surrendered.

Invisibles. Exchange receipts from invisibles must be surrendered. Persons may bring in a maximum of ₱ 100 in Philippine currency.

Capital. Authorization is required for transactions involving foreign assets of resident nationals as well as for incurring new liabilities to nonresidents. Exchange receipts from capital must be surrendered.

Table of Exchange Rates (as at December 31, 1951)(Philippine pesos per U.S. dollar)
BuyingSelling
2.00375All incoming exchange.2.015Government payments. Imports of machinery, materials for new and necessary industries, basic foodstuffs, fertilizers, etc. Certain specified invisibles.
2.35755

(₱ 2.015 rate plus 17% exchange tax)
Other imports. Other invisibles and capital.

Changes during 1951

March 28

A 17 per cent tax was levied on sales of foreign exchange. Sales of exchange for certain commodities and invisibles are either exempted from the tax or the tax is refunded.

Imported strategic materials were prohibited from re-exportation. Locally produced strategic materials were prohibited from exportation to China, North Korea, Macao, and Hong Kong.

April 1

Licensing of practically all essential imports was transferred to the Price Stabilization Corporation.

Rice, flour, milk, canned fish, canned meats, and coffee beans could be imported without quota allocation.

May 11

Quota restrictions were lifted from 19 groups of essential import goods.

June 7

The amount granted for maintenance of persons undergoing medical treatment abroad was set at US$300 per month in North, Central, and South America and US$150 per month in Europe.

June 19

An Export Control Committee was created and export items were classified into three categories: (1) prohibited exports, (2) exports allowed without permit, and (3) exports which require a permit.

July 1

A revised import control law went into effect. Imports were divided into three categories: (1) decontrolled goods, (2) controlled essential goods, (3) controlled non-essential goods. Licensing of all imports was centralized in the Import Control Commission.

August 28

The import of certain items which are produced domestically in sufficient quantities or which are not essential to the health and well-being of the people was prohibited. The number of de-controlled items was reduced to 8 categories.

October 31

Control over exports and re-exports was extended and tightened.

December 6

Remittances for books and periodicals in amounts not exceeding US$100 were allowed without any specific import license.

SWEDEN1

Date of Introduction

February 25, 1940. Last major revision June 17, 1949.

Nature of Restrictive System

Restrictions are exercised through import prohibitions, licenses being required for some imports from certain countries and most imports from all other countries, and through licenses required for nontrade payments; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange from certain countries or in certain currencies must be surrendered. Other exchange receipts must be transferred to Sweden. Certain exports require licenses.

Exchange Rates

Par value: Swedish Kronor 5.17321 = US$1. Official rates: buying SKr 5.17, selling SKr 5.18 per US$1.

Exchange Payments

Imports. Some imports mainly from EPU countries and their associated territories2 and most imports from all other countries require import licenses. All other imports are free of license. Appropriate exchange is granted for authorized imports. Payments for imports in advance of shipment are allowed in some cases.

Invisibles. Payments abroad require licenses, which are freely granted for most payments. Residents traveling abroad for tourist purposes are freely granted SKr 500 per year in the appropriate currencies. For travel to EPU countries, Egypt, Israel, Spain and Yugoslavia, an additional SKr 250 per year is granted. For travel to Denmark, Finland, Norway, and Sterling Area countries, reasonable amounts are authorized. Persons traveling abroad may take with them a maximum of SKr 100 in Swedish banknotes in denominations not exceeding SKr 50.

Capital. Transfers of capital require approval.

Exchange Receipts

Exports. Certain exports require licenses. The proceeds of exports to certain countries3 or in certain currencies4 must be surrendered. Other exchange receipts must be transferred to Sweden.

Invisibles. Exchange receipts from invisibles from certain countries or in certain currencies must be surrendered. Other exchange receipts must be transferred to Sweden. Persons may bring in a maximum of SKr 100 in Swedish banknotes in denominations not exceeding SKr 50.

Capital. The investment of foreign capital requires approval. Exchange receipts from capital owned by residents must be transferred to Sweden and in some cases surrendered.

Changes during 1951

January 1

The export of certain essential goods was made subject to export license.

April 1

The list of goods which could be imported free of import license from EPU countries was revised.

June 16

Exports of many essential products were made subject to license.

November 5

The International Monetary Fund announced the establishment of the initial par value for the Swedish krona at SKr 5.17321 per U.S. dollar.

Syria

Date of Introduction

December 3, 1939. Last major revision September 26, 1949.

Nature of Restrictive System

Restrictions are exercised through a multiple currency practice resulting from the use of free markets with rates differing from parity by more than 1 per cent, and through licenses required for imports and for payments effected with “exportation exchange”. A multiple currency practice results on the buying side from the application of different effective rates. A few exports are prohibited.

Exchange Rates

Par value: Syrian Pounds 2.19148 = US$1. Official rates: buying LS 2.19, selling LS 2.21 per US$1. The “exportation exchange” and the use of a free market yield various effective rates (see Table of Exchange Rates below).

Exchange Payments

Imports. All imports require licenses. Imports are effected through the “exportation exchange” or the free market rate, the letter being currently at LS 3.83 per U.S. dollar, the rate for “exportation exchange” being slightly lower.

Invisibles. Payments abroad may be freely effected if the remitter provides his own exchange or purchases it in the free market. However, to effect such payments with “exportation exchange”, an exchange license is required, which may be given in a few specific cases. Persons traveling abroad may take with them a maximum of LS 50 in Syrian banknotes.

Capital. Transfers of capital abroad may be freely effected, but the remitter must provide his own exchange or purchase it in the free market.

Exchange Receipts

Exports. A few exports essential to the domestic economy are prohibited. Most other exports are free of license. Exchange proceeds from the principal exports can be recorded with an approved bank in Syria in a specified currency1 as “exportation exchange” which is freely disposable within Syria; its transfer abroad is free for payments for licensed imports, but if such transfer is to be effected for other transactions, a license, which is given in a few specific cases, is required.

Invisibles. Exchange receipts from invisibles are freely disposable. Companies operating under special contract must sell at the LS 2.19 rate 100 per cent of the specified currencies to be sold.

Capital. Exchange receipts from capital are freely disposable.

Table of Exchange Rates (as at December 31, 1951)(Syrian pounds per U.S. dollar)
BuyingSelling
2.19Sales of specified currencies by companies operating under contract.2.21Government payments.
3.80

(Fluctuating “Exportation Exchange” Rate)
Exports requiring the remittance of “exportation exchange.”3.80

(Fluctuating “Exportation Exchange” Rate)
Imports with license and authorized payments.
3.83

(Fluctuating Free Market Rate)
All other exports. Invisibles and capital.3.83

(Fluctuating Free Market Rate)
All other payments.

Changes during 1951

April 15

Companies operating under special contract had to sell 100 per cent, instead of 80 per cent as formerly, at the official rate.

April 28

Additional items were added to the list of prohibited exports.

May 20

A few items were added to the list of prohibited imports.

June 2

A general embargo on all gold exports temporarily suspended in October 1950 was reimposed.

June 5

The export of certain commodities was prohibited and certain other commodities were made subject to license.

July 26

Some commodities were added to the list of exports subject to license. All such exports had to be made through the port of Latakia.

August 27

Certain essential goods could be imported only through the port of Latakia.

September 10

The requirement that foreign tourists and receivers of emigrants’ remittances surrender 10 per cent of their exchange at the official rate was lifted.

Thailand

Date of Introduction

January 27, 1942. Revised in 1948.

Nature of Restrictive System

Restrictions are exercised through multiple currency practices resulting from the use of a free market with rates differing from the official rate and a penalty selling rate, and through licenses required for a few goods. The foreign exchange proceeds of the principal exports must be surrendered in varying proportions. Multiple currency practices result on the buying side from the application of different effective rates. A few exports require licenses.

Exchange Rates

No par value for the Baht. Official rates: buying baht 12.45, selling baht 12.55 per US$1. The surrender of various proportions of exchange and the use of the free market yield various effective rates; special fixed rates apply to most transactions with Japan (see Table of Exchange Rates below).

Exchange Payments

Imports. Import licenses are required for only a few goods. Most government imports and gasoline, kerosene, and fuel oil imports are effected at the baht 12.55 rate. Most imports from Japan require import licenses and are effected at the baht 20.70 rate. Pounds sterling in settlement of payments for authorized imports are provided by the Bank of Thailand through the commercial banks at a rate not more than 2 per cent below the average free market selling rate of the previous week. Payments for other imports are made through the free market, which is currently at a rate of baht 22.08 per U.S. dollar.

Invisibles. Remittances for students are effected at the baht 12.55 rate. Foreign exchange for other purposes is obtained in the free market.

Capital. Foreign exchange for transfers of capital is obtained in the free market.

Exchange Receipts

Exports. Export licenses are required for the principal export commodities and for all exports to Japan. Exporters of rice must surrender exchange 100 per cent, of tin 40 per cent, and of rubber 20 per cent of the officially-appraised value of the goods exported, at the baht 12.45 rate; the remainder may be sold in the free market. The proceeds of all other exports may be sold in the free market, except for those to Japan, which are effected at a special baht 20.30 rate.

Invisibles. Exchange receipts from invisibles may be sold in the free market.

Capital. Exchange receipts from capital may be sold in the free market.

Table of Exchange Rates (as at December 31,1951)(baht per U.S. dollar)
BuyingSelling
12.45Rice exports.12.55Most government payments. Imports of gasoline, kerosene, and fuel oils. Student remittances.
18.114

(40% at the baht 12.45 rate and 60% at the Free Market Rate)
Tin exports.
20.002

(20% at the baht 12.45 rate and 80% at the Free Market Rate)
Rubber exports.
20.30Exports to Japan, except rice, tin, and rubber.20.70Imports from Japan, except government imports and a few luxury items.
21.89

(Fluctuating Free Market Rate)
Other exports. Invisibles and capital.22.08

(Fluctuating Free Market Rate)
Other imports. Other invisibles and capital.
Note: The above rate structure, being expressed in terms of U.S. dollars, does not take account of rates for sterling which is at a discount in the free market on the basis of the dollar-sterling parity. There is also an additional selling rate for sterling, since pounds sterling are sold by the Bank of Thailand to commercial banks for payment for authorized imports at a preferential rate not more than 2% below the average free market selling rate during the previous week.

Changes during 1951

April 16

The Bank of Thailand began to sell sterling to commercial banks in payment of authorized imports at a preferential rate not more than 2 per cent below the average free market selling rate during the previous week, instead of at a fixed rate of baht 57 per £1, as previously.

July 23

The export of all kinds of timber except teak was made subject to license.

July 31

The export of antimony, castor oil, castor oil seeds, iron ores, kapok, lead metal, lead ores, para rubber, tin ores, tungsten, wolfram, and zinc was made subject to license.

November

The prohibition on the “private” export of rice was removed. Private exports of rice were permitted providing the exporter supplied the Government Rice Bureau with three and one-half times the amount of rice to be exported and surrendered exchange proceeds equal to the appraised value of the quantity exported at the official rate.

December 1

The middle rate for settlements with Japan was changed from baht 20 to baht 20.50 per US$1.

Turkey

Date of Introduction

February 20, 1930. Last major revision September 1, 1950.

Nature of Restrictive System

Restrictions are exercised through the allocation of exchange to importers and through licenses required for payments not in respect of imports. Foreign exchange must be surrendered, but the export proceeds of certain goods may be used to effect the import of certain other goods.

Exchange Rates

Par value: Turkish Liras 2.80 = US$1. Official rates: buying LT 2.80, selling LT 2.8252 per US$1.

Exchange Payments

Imports. Some imports from EPU countries and their associated territories1 and most imports from all other countries require the allocation of exchange. The import of certain goods may be made with the exchange proceeds of certain exports.

Invisibles. Payments abroad require licenses. Persons traveling abroad may take with them a maximum of LT 100 in Turkish banknotes. Profits, interest, and dividends on approved capital investments may be transferred abroad up to a maximum of 10 per cent annually.

Capital. Transfers of capital require approval. Approved capital investments of nonresidents may be repatriated in the original currency after a certain period of time. The time may not be less than 3 years from date of entry for cash capital or less than 5 years for capital equipment. Nonresident assets in Turkey can be used for exports of specified commodities and for certain expenses in Turkey.

Exchange Receipts

Exports. With the exception of a few goods, exports are free of license. The proceeds of exports to countries with which Turkey has trade and payments agreements must be received through the corresponding agreement account. The proceeds of exports to other countries must be received in a convertible currency or in pounds sterling. Exchange proceeds must be surrendered, but the exchange proceeds of certain exports may be used to pay for certain imports.

Invisibles. Exchange receipts from invisibles must be surrendered. Persons may bring in a maximum of LT 100 in Turkish banknotes.

Capital. The investment of foreign capital can be made freely. Capital invested in projects considered useful for the economic development of Turkey may obtain an official guarantee that the capital may be repatriated and profits, interest, and dividends may be remitted up to certain limits.

Changes during 1951

February 10

A regulation was passed making it obligatory for export documents to be passed through an authorized bank.

February 20

The lists showing which goods could be exported, imported, with or without a license, were extended.

March 28

The import of certain listed goods with private holdings of exchange was allowed until September 30, 1951.

August 9

A law, specifying the conditions attaching to foreign investment in Turkey by which the repatriation, as well as the remittance of profits, interest, and dividends up to 10 per cent annually, could be guaranteed, became effective.

Union of South Africa

Date of Introduction

September 9, 1939. Last major revision January 1, 1950. Consolidation of amendments to the Exchange Control Regulations was effected and gazetted on November 2,1951.

Nature of Restrictive System

Restrictions are exercised through licenses required for most imports, and through licenses required for nontrade payments to countries outside the Sterling Area; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange, other than Sterling Area currencies, must be surrendered. Certain exports require licenses.

Exchange Rates

Par value: South African Pound 1 = US$2.80. Official rates: buying US$2.78625, selling US$2.7725 per £SA 1.

Exchange Control Territory

There are no exchange or trade restrictions between the Union of South Africa, South West Africa, Basutoland, Swaziland, and the Bechuanaland Protectorate. These territories may be regarded as forming with the Union of South Africa a single exchange control territory.

Exchange Payments

Payments to other parts of the Sterling Area must be effected in a Sterling Area currency. Payments to outside the Sterling Area must be effected either in the foreign exchange appropriate to the country of the recipient or by crediting the appropriate sterling account of a nonresident.

Imports. Most imports require import licenses, which are liberally granted for certain essential items. Import licenses are of two types: (1) general—valid for imports from all countries, and (2) restricted—valid for imports only from “soft currency” countries.1 For raw materials, consumable stores and maintenance spares, licenses are granted to importers on the basis of quotas fixed in accordance with previous consumption and estimated requirements. For consumer goods, licenses are granted to importers up to the limit of quotas based on previous imports; 25 per cent of such quotas are issued in the form of General Licenses and 75 per cent in the form of Restricted Licenses. In respect of consumer goods, Restricted Licenses can be exchanged for General Licenses for a smaller amount, and both General and Restricted Licenses can be exchanged for licenses which permit a smaller amount of otherwise prohibited imports either from any country or only from “soft currency” countries, according to the type of license exchanged. Certain items may be imported from “soft currency” countries free of license. Exchange is automatically granted for authorized imports.

Invisibles. Payments to outside the Sterling Area require licenses which are freely granted for most invisibles. Non-sterling exchange for film royalties and traveling purposes is granted in limited amounts.

Capital. Transfers of capital to outside the Sterling Area require approval. Foreign capital may be repatriated in the form in which it was originally provided. Capital transfers are authorized in limited amounts in cases of emigration to countries outside the Sterling Area.

Exchange Receipts

Exports. Exports of certain commodities require licenses. The exchange proceeds of all exports to outside the Sterling Area must be received (1) in appropriate foreign exchange or (2) in sterling from an account appropriate to the country of destination. All non-sterling exchange must be surrendered. Special conditions apply to the manner of payment for the export of diamonds.

Invisibles. Exchange receipts from invisibles, other than Sterling Area currencies, must be surrendered. Such receipts from outside the Sterling Area must be received (1) in appropriate foreign exchange or (2) in sterling from an account appropriate to the country of the remitter.

Capital. Most foreign exchange receipts, other than Sterling Area currencies, must be surrendered. Capital from outside the Sterling Area must be received (1) in appropriate foreign exchange or (2) in sterling from an account appropriate to the country of the remitter.

Changes during 1951

January 1

Import licenses for 1951 in respect of consumer goods were to be issued for 25 per cent of an importer’s allocation for purchases in either “hard” or “soft currency” countries and to the extent of 75 per cent for purchases in “soft currency” countries. Importers could convert their Restricted Licenses to General Licenses—50 per cent on the basis of £SA 1 “hard currency” for every £SA 2 “soft currency” and the remaining 50 per cent at the rate of £SA 1 “hard currency” for every £SA 5 “soft currency”. Importers could also use both Restricted and General Licenses to obtain licenses to import goods on the “prohibited list” on the basis of £SA 5 of the available permits for every £SA 1 of “prohibited” goods to be imported.

February 9

Special import licenses would be freely granted for certain textile piece goods imported from “hard” or “soft currency” countries provided new ceiling prices were not exceeded.

March 22

The export of a wide range of commodities was made subject to license.

September 14

A revised and expanded list of commodities subject to export control was issued.

United Kingdom

Date of Introduction

September 3, 1939.

Nature of Restrictive System

Restrictions are exercised through licenses required for almost all imports from certain countries and for some imports from other countries, and through licenses required for nontrade payments to outside the Sterling Area; exchange is granted for imports and nontrade payments authorized by these licenses. Foreign exchange in certain currencies must be surrendered. Certain exports require licenses.1

Exchange Rates

Par value: United Kingdom Pound 1 = US$2.80. Market rates are maintained for most currencies dealt with in the United Kingdom between official limits corresponding to buying US$2.82, selling US$2.78 per £1.

Exchange Payments

Payments to outside the Sterling Area must be effected either (1) by crediting the appropriate sterling account of a nonresident or (2) in some cases, in appropriate foreign exchange. Payments for invisibles on behalf of persons in other territories of the Sterling Area require approval of their local exchange control authorities.

Imports. Apart from transactions on government account, almost all imports from certain countries2 and some imports from all other countries require import licenses. All other imports are freely permitted. Exchange is automatically granted for authorized imports.

Invisibles. Payments to outside the Sterling Area require licenses. Foreign exchange is freely granted for expenses incidental to trade transactions. Remittances for such purposes as charity, maintenance, and education are authorized in moderate amounts. Residents traveling to specified countries are freely granted certain amounts in the appropriate currencies. Not more than £10 3 in British banknotes may be taken out of the United Kingdom except by persons traveling direct to the Irish Republic. The transfer abroad of dividends, reasonable profits, and other current earnings due to nonresidents is freely authorized, but the remittance of film royalties due to United States companies is limited by special agreement. Certain freedom in exchange operations is granted to specified commodity markets, e.g., rubber, cocoa, coffee, tin and grain, and to the insurance market.

Capital. Transfers of capital to outside the Sterling Area require approval. Foreign exchange is freely granted for repayments abroad in respect of matured capital obligations of non-residents. In other cases, the liquidation of proceeds of foreign capital can be used only for reinvestment in sterling securities not maturing earlier than ten years from the date of purchase. Capital transfers are authorized in limited amounts in cases of emigration to countries outside the Sterling Area. Special facilities permit residents of Scandinavia4 to have all capital proceeds due to them transferred to their respective countries.

Exchange Receipts

Exports. Certain exports require export licenses, as do all exports to China and Hong Kong. The proceeds of all exports to outside the Sterling Area must be received (1) from a sterling account appropriate to the country of destination or (2) in some cases, in appropriate foreign exchange. Exchange receipts in certain currencies must be surrendered.

Invisibles. Exchange receipts from invisibles in certain currencies must be surrendered. Permission is given for foreign exchange to be retained on controlled accounts where it is required for operating purposes. Not more than £10 in British banknotes may be brought into the United Kingdom except by persons traveling direct from the Irish Republic.

Capital. Exchange receipts from capital in certain currencies must be surrendered. Most foreign exchange receipts from securities can be used for reinvestment. Persons residing outside the Sterling Area making investments in the United Kingdom must provide appropriate foreign exchange or sterling from a nonresident account related to their country or monetary area. Capital directly invested after January 1, 1950 in projects approved by the exchange control authorities may be repatriated at any time to the extent of the original investment and from the proceeds of that investment.

Nonresident Accounts

The sterling accounts of nonresidents, i.e., those resident outside the Sterling Area, are available for payments in the Sterling Area and for transfers to residents in the same country or monetary area as the account-holder. The extent of transferability of these accounts to other nonresidents varies according to the four groups described below. However, considerable transferability is achieved by granting licenses to effect payments outside the prescribed arrangements.

1. American Accounts (Bolivia, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Philippine Republic, United States and possessions, and Venezuela). Payments from these accounts may be freely made to any account related to countries in the American Account Area, the Transferable Account Area, and the Residual Group or to Canadian Accounts. Balances on American Accounts may be freely converted into Canadian or U.S. dollars.

2. Transferable Accounts (Anglo-Egyptian Sudan, Austria, Chile, Czechoslovakia, Denmark, the Faroe Islands and Greenland, Egypt, Ethiopia, Finland, Greece, Italian Monetary Area, Netherlands Monetary Area, Norway, Poland, Spanish Monetary Area, Sweden, Thailand, U.S.S.R., and the Western Zones of Germany). In addition to Transferable Accounts, there are other accounts related to countries in this area. Payments from Transferable Accounts may be freely made to any account related to the Transferable Account Area or Residual Group in respect of direct current transactions. Payments from other accounts of residents in the Transferable Account Area may be freely made to any account, including a Transferable Account, related to the same country or monetary area as the account holder.

3. Bilateral Accounts (Argentina, Belgian Monetary Area, Brazil, Bulgaria, Canada, China, Formosa, French Franc Area, French Somaliland, Hungary, Iran, Israel, Japan, Lebanon, Paraguay, Peru, Portuguese Monetary Area, Rumania, Switzerland, Syria, Tangier, Turkey, Uruguay, Vatican City, and Yugoslavia). Payments from these accounts (excluding China, Formosa, and Iran to which certain restrictions apply) may be freely made to any account related to the same country or monetary area as to the account holder. Balances on Canadian Accounts may also be paid freely to American Accounts or converted into Canadian or U.S. dollars.

4. Residual Group (Unclassified countries not in the above groups, including Afghanistan, Albania, Andorra, Eritrea, Liberia, Nepal, Saudi Arabia, and Yemen). Payments from these accounts may be freely made to any account related to any country in this group.

Changes during 1951

January 3

Special exchange control facilities were introduced for participants in the London Cocoa Market Scheme.

January 19

Austria and Greece became Transferable Account countries.

February 12

Export licenses were required for certain goods of strategic value or in short supply.

February 15

Certain additions were made to the list of commodities which could be imported from certain countries without an individual import license.

March 7

Further additions were made to the list of commodities which could be imported from certain countries without an individual import license.

March 28

Additions were made to the list of commodities which could be imported from any country without an individual import license.

March 31

Additions were made to the list of goods subject to export licensing.

April 3

Further additions were made to the list of commodities which could be imported from certain countries without an individual import license.

April 11

Authorized banks were permitted to buy and sell foreign banknotes and coin for their own account at rates of exchange deter-mined on a commercial basis.

May 1

Further additions were made to the list of commodities which could be imported from certain countries without an individual import license.

June 8

The amount of sterling notes which travelers could bring in or take out of the United Kingdom was raised from £5 to £10.

June 20

All exports to China and Hong Kong became subject to export licensing; in respect of specified strategic materials, no licenses would be granted.

June 26

The normal maximum allowance of £1,000 which an emigrant to a country not a Sterling Area territory or an EPU country could have transferred to his new country over a period of four years was increased by an additional allowance of £250 per dependent with a maximum of £1,000 also spread over a period of four years.

August 21

Further additions were made to the list of commodities which could be imported from certain countries without an individual import license.

August 31

The Western Zones of Germany, comprising the territory of the Federal Republic of Germany and the British, French, and United States Sectors of Berlin, became a Transferable Account country.

September 10

Iran was removed from the list of Transferable Account countries.

November 7

The basic exchange allowance for tourists traveling abroad to certain countries was reduced from £100 to £50 per twelve months.5

November 8

A number of commodities which could previously be imported without restriction as to amount from certain countries was made subject to individual import licensing except for those imports coming from territories in the Sterling Area. In respect of those items thus made subject to limitations, import quotas valid until June 30, 1952 were published for imports from the countries affected.

December 17

Official quotations for forward exchange were withdrawn, and authorized banks were permitted to deal in forward exchange at rates governed by market conditions. The spread of official spot rates for the U.S. dollar was widened from $2.79⅞-$2.80⅛ per £1 to $2.78-$2.82 per £1. Authorized banks were permitted to effect authorized transactions in the exchange market within these limits, and for other specified currencies within published official rates for those currencies. Authorized banks were allowed to deal in spot and forward exchange between themselves, and to cover permitted transactions in Canadian or U.S. dollars spot or forward with banks in the American Account Area or in Canada. Sterling held on Canadian and American Accounts could be freely transferred between such accounts or converted into either Canadian or U.S. dollars. Authorized banks were permitted to deal with persons outside the Sterling Area in spot U.S. dollars against spot Canadian dollars.

Uruguay

Date of Introduction

May 1931. Last major revision October 6, 1949.

Nature of Restrictive System

Restrictions are exercised through licenses for most imports, granted up to the limits of individual exchange quotas and through a multiple currency practice resulting from the application of penalty selling rates, including a fluctuating free market rate. Foreign exchange from exports must be surrendered. A multiple currency practice also results on the buying side from the application of different fixed exchange rates and the fluctuating free market rate. All exports require licenses.

Exchange Rates

No par value for the Uruguayan Peso. Three official buying and three official selling rates, an exchange premium, and a free market produce the effective rates (see Table of Exchange Rates below).

Exchange Payments

Imports. Most imports require import licenses, which are issued up to the limits of individual exchange quotas computed on the basis of previous imports and other criteria. However, the import of most specified essential goods from the Sterling Area is free of license.1 Imports of newsprint, inks, and card-board matrices are effected at the P 1.519 rate. Essential imports are effected at the P 1.90 rate. Non-essential and luxury imports are effected at the P 2.45 rate.

Invisibles. Government payments are made at the P 1.519 rate. Exchange for other invisibles must be obtained in the free market, currently at P 2.40 per U.S. dollar.

Capital. Transfers of capital must be effected through the free market.

Exchange Receipts

Exports. All exports require licenses which are granted automatically if the exchange proceeds have been contractually sold in advance to an authorized bank, except that the export of essential goods in short supply may be prohibited. Proceeds of basic exports (meat, wool, linseed, dried and salted hides and skins, and wheat) must be surrendered at the P 1.519 rate. Ex-port proceeds of bristles, edible and non-edible oils, and packing house products must be surrendered at the P 1.78 rate. Export proceeds of woolen manufactures, pork, bricks, and various manufactured products must be surrendered at the P 2.35 rate. Exports of shoes and tanned and semi-tanned leather receive a premium of P 0.25 per U.S. dollar over the P 2.35 rate, yielding an effective rate of P 2.60 per U.S. dollar.

Invisibles. Exchange receipts from invisibles may be sold in the free market.

Capital. Exchange receipts from capital may be sold in the free market.

Table of Exchange Rates (as at December 31, 1951)(pesos per U.S. dollar)
BuyingSelling
1.519Basic exports (meat, wool, linseed, wheat, dried and salted skins).1.519Government payments. Newsprint, inks, and cardboard matrix imports.
1.78Exports of rice, non-edible oils, packing house products, etc.1.90Essential imports.
2.35Exports of woolen manufactures, pork, bricks, and other manufactured products.
2.40

(Fluctuating Free Market Rate)
Invisibles and capital.2.40

(Fluctuating Free Market Rate)
Invisibles and capital.
2.60

(P 2.35 rate plus P 0.25 premium)
Exports of shoes, tanned and semi-tanned leather (until December 31, 1951).2.45Non - essential and luxury imports.
Note: An exchange tax of 1% is applied to the purchase of export proceeds.

Changes during 1951

January 4

The requirement of a prior permit for imports of specified essential (first category) goods from the Sterling Area was reimposed.

February 22

The requirement of a prior permit for imports of specified less-essential (second category) goods from Belgium, Canada, France, Germany, Italy, Netherlands, Sweden, Switzerland, and the United States was abolished. The abolition of this requirement was also applied to imports of fuels, lubricants, machinery, and raw materials financed in pounds sterling.

October 11

The requirement of a prior permit for imports of specified essential (first category) and specified less-essential (second category) goods from the Sterling Area was removed.

December 4

The requirement of a prior permit for all imports was reinstated.

December 12

The requirement of a prior permit for specified essential (first category) goods (except bus and truck chassis) from the Sterling Area, was removed.

Venezuela

Date of Introduction

August 1934. Last major revision July 1941.

Nature of Restrictive System

Restrictions are exercised through licenses required for a few goods of a type produced locally. Exchange payments are not restricted. Multiple currency practices result from the application of differential rates to export proceeds of coffee and cacao, to purchases of exchange from the petroleum companies, and to government imports. A few exports require licenses.

Exchange Rates

Par value: Bolivares 3.35 = US$1. Official rate: selling Bs 3.35 per US$1; the corresponding buying rate fluctuates around Bs 3.325 per US$1. Other buying and selling rates have been established (see Table of Exchange Rates below).

Exchange Payments

Imports. Import licenses are required for only a few goods, mostly of a type produced locally. Payments for government imports are effected at the Bs 3.09 rate. Payments for all other imports are effected at the Bs 3.35 rate.

Invisibles. Payments for invisible transactions may be freely made at the Bs 3.35 rate.

Capital. Payments for transfers of capital may be freely made at the Bs 3.35 rate.

Exchange Receipts

Exports. The export of strategic materials to certain countries is prohibited. Export licenses are required for a few products essential to the domestic economy. The oil companies must surrender export proceeds to the extent of their local currency requirements at the Bs 3.09 rate. A Bs 3.046259 rate is applied to exchange surrendered by them in excess of the Central Bank’s sales of exchange to domestic buyers during any one year. The proceeds of exports other than petroleum are sold at the Bs 3.32 rate, but if the world prices for cacao and coffee are below certain levels, a proportion of the proceeds of cacao and unwashed coffee exports can be sold at the Bs 4.25 rate, and of washed coffee exports at the Bs 4.80 rate.

Invisibles. Exchange receipts from invisibles are freely disposable or can be sold at the Bs 3.32 rate.

Capital. Exchange receipts from capital are freely disposable or can be sold at the Bs 3.32 rate.

Table of Exchange Rates (as at December 31, 1951)(bolivares per U.S. dollar)
BuyingSelling
3.046259Local currency requirements of petroleum companies in excess of Central Bank’s foreign exchange sales.
3.09Local currency requirements of petroleum companies up to the limit of Central Bank’s foreign exchange sales.3.09Government imports.
3.32Coffee and cacao exports in a proportion depending on world prices. All other exports except petroleum. Invisibles and capital.3.35All other payments.
4.25Cacao and unwashed coffee exports in a proportion depending on world prices.
4.80Washed coffee exports in a proportion depending on world prices.
Note: The above rates for coffee and cacao need not be effective rates since sales at these rates are varied in accordance with the world prices for these commodities. Taxes of Bs 2 and Bs 1½ per 46 kilograms are levied on washed and unwashed coffee, respectively.

Changes during 1951

May 18

A revised list of commodities subject to export licensing was issued.

May 25

The requirement that a proportion of local butter must be purchased in order to obtain a license to import foreign butter was abolished.

May 25

The privilege hitherto received by Governments of the States and Territories of the Republic, the Government of the Federal District, and Official Autonomous Institutes to purchase exchange at the favorable rate of Bs 3.09 per U.S. dollar was withdrawn. Exchange purchases by these entities at this favorable rate may be authorized by the National Government in exceptional circumstances.

June 22

The export, including re-shipment, of strategic materials to China and North Korea was prohibited.

Yugoslavia

Date of Introduction

October 7, 1931. Revised October 25, 1946, and February 4, 1948.

Nature of Restrictive System

Authorizations of imports and exports are granted along the general lines of the economic plan. The system of centralized management of foreign trade and concentration of foreign trade operations in a few central enterprises prevailing hitherto has been replaced by a new system where the distribution of foreign exchange is made within individual economic branches, while foreign trade is carried by an increasing number of particular enterprises. Licenses are required for all imports and nontrade payments. Foreign exchange must, with some exceptions, be surrendered.

Exchange Rates

Par value: Yugoslav Dinars 300 = US$1. Official rates: buying and selling at the par value.

Exchange Payments

Imports. Authorizations of imports are granted along the general lines of the economic plan. An exchange license is required in addition to an import license. Import licenses are freely granted for imports paid from exchange left to export enterprises out of their export proceeds.

Invisibles. Payments abroad require licenses. Persons traveling abroad may take with them a maximum of Din 500 in Yugoslav banknotes.

Capital. Transfers of capital require approval.

Exchange Receipts

Exports. All exports require licenses. Exchange receipts must be surrendered, but individual enterprises are allowed to use freely 80 per cent of the receipts realized in excess of the planned targets. Exchange receipts derived from the export of certain foodstuffs and agricultural products for which there are no planned targets, need only be 50 per cent surrendered, the balance being for the use of the exporting enterprise.

Invisibles. Exchange receipts from invisibles must be surrendered. Persons may bring in a maximum of Din 500 in Yugoslav banknotes.

Capital. The investment of foreign capital requires approval. Exchange receipts from capital must be surrendered.

Changes during 1951

The process of re-organizing the Yugoslav economic system and equilibrating the Yugoslav prices, started in 1950, made considerable progress. During 1951, the system of rationing on the domestic market was abolished, and the multiple price levels replaced by a uniform free market price system that enabled the elimination of a number of direct restrictions in domestic trade and an alleviation of direct restrictions on foreign trade. In accordance with the principle of transferring the management of enterprises to working collectives, the state monopoly in foreign trade has been gradually replaced by a system in which an increasing number of producing enterprises conduct their own foreign trade. Accordingly, the method of exchange and import control underwent considerable changes, allowing more freedom for such enterprises in their foreign trade transactions and in the use of foreign exchange. The process of contemplated change is, however, not yet concluded.

August

Two lists of export commodities were published in respect of which exporters could utilize fixed percentages of the exchange proceeds of their exports to pay for their imports.

December 28

With the concurrence of the International Monetary Fund, the par value of the Yugoslav dinar was changed from Din 50 to Din 300 per U.S. dollar.

Similarly, the inclusion of a restriction, or a change of restriction, in this Report is not to be taken as indicating that the Fund necessarily regards as desirable, or has given specific approval to, the restriction or change described.

Effective March 8, 1952, import licensing was extended to cover imports from all countries. Import licenses would be issued on percentage quotas based on previous imports in the base year 1950-51 for imports not previously covered by licensing requirements. The basis for issuing licenses for imports from “hard currency” countries remained unchanged.

“Hard currency” countries are listed as follows: Argentina, Bolivia, Canada, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Iran, Japan, Mexico, Nicaragua, North Korea, Panama, Philippine Republic, Russian Zone of Germany, United States and possessions, U.S.S.R., and Venezuela.

See footnote 1.

See footnote 2.

On January 1, 1952, the official commercial rates were narrowed to buying S 21.30, selling S 21.42 per US$1.

Effective January 1, 1952, these retention quota arrangements were abolished, and, in place, the import needs of export producing industries were given preferential treatment.

In 1952, limitations on transfers of capital to these countries were removed.

Effective January 21, 1952, the withheld percentage of EPU export proceeds was increased to 7½ per cent and 10 per cent in respect of certain goods. Effective March 24, 1952, percentages of 5 per cent, 7½ per cent, 10 per cent, 15 per cent, 20 per cent, and 25 per cent were applied, according to the category of the goods exported, but authorized banks were permitted to discount the balances standing to the credit of the temporarily-blocked accounts on which such funds were held.

Effective March 24, 1952, 40 per cent of exchange proceeds originating an financial transactions with EPU countries and exceeding Bfr 1,000 must be withheld for six months on a blocked account.

Effective March 24, 1952, export taxes were abolished in respect of export proceeds obtained in Canadian or U.S. dollars.

Effective January 1, 1952, this tax was raised to 8 per cent, making the effective selling rate Cr$20.2176 per US$1.

These currencies are listed as follows: Belgian francs, Canadian dollars, Portuguese escudos, pounds sterling, Swedish kronor, Swiss francs, U.S. dollars, and Uruguayan pesos.

See footnote 1.

Membership in the International Monetary Fund became effective January 3, 1952.

This comprises Bolivia, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Philippine Republic, United States and possessions, and Venezuela.

The establishment of this initial par value for the Ceylon rupee was announced January 17, 1952.

These countries are listed as follows: Bolivia, Canada, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Paraguay, Philippine Republic, United States and possessions, and Venezuela.

Effective January 1, 1952, certain changes took place in the application of these rates. The mixed rate of P 54.20 was abolished and new mixed rates of P 66 and P 75 were established; the export commodities to which these rates and the P 49.85 and P 90 rates applied were rearranged so as to give more prominence to the use of the P 60 rate for agricultural exports and to the P 90 rate for general exports.

See footnote 1.

This exchange rate is 20 pesos above the “Free Market” rate.

Effective in Taiwan as of December 31, 1951.

As of December 31, 1951. The percentage at the Ps$2.50 rate is raised by 1½% each month.

Austria and Italy have been excluded.

These countries are listed as: Austria, Belgium, France, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Sweden, Switzerland, Trieste, Turkey, Western Germany, their overseas territories, and all territories of the Sterling Area.

Effective February 28, 1952, the compensation system was abolished and the mixed rates eliminated. Minor exports and luxury imports were transferred to the existing free market.

See footnote 1.

These countries are listed as follows: Argentina, Bolivia, Brazil, Canada, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Philippine Republic, Portuguese Monetary Area, United States and possessions, and Venezuela.

The American Account Area is listed as follows: Bolivia, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Philippine Republic, United States and possessions, and Venezuela.

Restrictions were also exercised during part of 1951 through a multiple currency practice consisting of a 30 per cent tax on exchange granted for most travel purposes. This tax was, however, abolished at the end of the year after having been in effect for a little over six months.

Effective January 10, 1952, exports of round timber also became subject to license.

As from the beginning of March 1952, licenses were required for all imports.

See footnote 2.

This arrangement was terminated at the beginning of March 1952.

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

By measures effective February 4 and February 19, 1952, the import liberalization measures applicable to EPU countries and their associated territories were suspended and most imports, regardless of country of origin, became subject to import licensing.

Effective February 8, 1952, this amount was reduced to fr 20,000.

For this purpose, the dollar area is described as: Canada, Colombia, Costa Rica, Cuba, Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Nicaragua, Panama, Philippine Republic, United States and dependencies, and Venezuela.

On January 20, 1952, the following territories were listed as comprising the dollar area for this purpose: Canada, Colombia, Costa Rica, Cuba, Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Nicaragua, Panama, Philippine Republic, United States and dependencies, and Venezuela.

Export licensing in Hong Kong, as in some other areas, is not related to exchange control.

Effective January 5, 1952, certificates derived from exports paid in EPU or dollar area currencies could be used for imports from any country.

These are listed as follows: Austria, Czechoslovakia, Finland, Hungary, Israel, Poland, and Spain.

These countries are listed as follows: Bolivia, Canada, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Liberia, Mexico, Nicaragua, Panama, Philippine Republic, United States and possessions, and Venezuela.

Exchange at the official rate for medical expenses is not provided in U.S. dollars.

On January 3, 1952, it was announced that the National Bank would quote official buying and selling rates for the U.S. dollar based on the rate prevailing in the London market. Authorized exchange dealers in Iraq are required to apply these official rates to their transactions with their customers.

These countries are listed as follows: Bolivia, Canada, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Philippine Republic, United States and possessions, and Venezuela.

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

These currencies are listed as follows: Belgian francs, Canadian dollars, Egyptian pounds, Swiss francs, pounds sterling, and U.S. dollars.

Effective January 30, 1952, the 10 per cent surrender requirement was abolished.

Effective January 30, 1952, the 10 per cent surrender requirement was abolished, eliminating the resulting mixed rate.

Effective May 24, 1952, this mixing arrangement was abolished, such transactions then being effected entirely at the free rate.

See footnote 3.

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

Effective February 11, 1952, this facility was extended to most export proceeds obtained in Canadian or U.S. dollars.

These countries are listed as follows: Austria, Belgium, Denmark, France, Greece, Italy, Luxembourg, Netherlands, Portugal, Sweden, Switzerland, Trieste, Turkey, Western Germany, their overseas territories, and the Sterling Area.

These countries are listed as follows: all countries other than Bolivia, Canada, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Japan, Mexico, Nicaragua, Panama, Philippine Republic, United States and possessions, and Venezuela.

Membership in the International Monetary Fund became effective August 31, 1951.

These countries are listed as follows: Austria, Belgium, Denmark, Finland, France, Greece, Indonesia, Italy, Luxembourg, Netherlands, Norway, Portugal, Switzerland, Trieste, Turkey, Western Germany, their overseas territories, and the Sterling Area.

All countries in North, Central, and South America, Philippine Republic, Portuguese Monetary Area, Switzerland and Tangier.

Argentine pesos, Portuguese escudos, Swiss francs, and U.S. dollars.

The specified currencies are Belgian francs, Egyptian pounds, French francs, pounds sterling, Swiss francs, and U.S. dollars.

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

These countries are listed as follows: all countries other than Bolivia, Canada, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama, Philippine Republic, United States and possessions, and Venezuela.

Export licensing in the United Kingdom, as in some other countries, is not related to exchange control.

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

This limit was reduced to £5 per person as from January 29, 1952.

In the United Kingdom exchange control regulations, Scandinavia comprises Denmark (including the Faroe Islands and Greenland), Norway and Sweden

Effective January 30, 1952, this basic exchange allowance was further reduced to £25.

Effective January 14, 1952, this arrangement was extended to certain essential goods from any source.

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