- International Monetary Fund. External Relations Dept.
- Published Date:
- September 1952
Enquiry on Exchange Systems and Related Matters
Multiple Currency Practices
1. Where there is more than one exchange rate effective in your territory for purchases or for sales of United States dollars, list the various rates for the U.S. dollar, and indicate:
(a) in as full detail as practicable the types of transactions (and in the case of trade transactions, the individual import and export commodities) to which each rate applies;
(b) for each rate whether it is set by the central authorities or left to be determined wholly or partially by market forces. In the latter case, indicate whether the monetary authorities endeavor to influence the level of of the rate (i) by operations in that market; (ii) by varying the volume of permitted transactions. Indicate in general what action under (i) and (ii) has been taken in the course of the year 1951;
(c) the approximate amount, or percentage of total transactions, passing at each U.S. dollar rate (whether or not the transactions are in U.S. dollars or in some other foreign currency) during a recent representative period; and
(d) the official procedures established to ensure that transactions are effected at the appropriate rates.
2. Give details of any taxes, official surcharges, or premiums which apply in your territory to exchange transactions, pointing out where the tax, surcharge, or premium is not uniform for all currencies and types of payments. Indicate whether or not these taxes, etc., have been included in computing the rates listed in the answer to 1, above. Describe how the various taxes, surcharges, or premiums are calculated and when they are collected or paid. In the case of taxes and surcharges, state the purposes, if any, to which the proceeds are assigned, e.g., export subsidies, etc.
3. Where exchange certificates exist, give details concerning their issue, use, negotiability and period of validity. In what currency or currencies are they denominated?
4a. List any exchange rates in your territory for a Fund member’s currency, for which a par value is currently established with the Fund, that are not related at such par value to the corresponding rate(s) quoted in your territory for the U.S. dollar.
b. If for any foreign currency an official rate is not fixed within your territory by your monetary authorities, what measures are taken to ensure the maintenance of orderly cross rates?
5. Describe the relationship between your control over exchange and control over imports, and insofar as the latter affects the policy and operation of the former, describe the nature and functioning of your import control system, giving such details of differences in treatment according to type and/or country of origin of commodity, criteria and conditions for licensing, etc., as well as comparative statistics and other data as you consider necessary to afford an understanding of how the system operates in practice.
6. To the extent not covered in your answer to Q. 5, describe the official requirements which must be fulfilled before banks or others may sell foreign exchange for imports, open import letters of credit, or effect payments for imports in local currency to non-residents. The answer to this question should be sufficiently detailed to include:
(a) Reference to the documents normally required to support an application to make payment for an import.
(b) Whether the submission of these supporting documents (or promise to submit them) automatically enables the exchange to be acquired or the payment to be made. If not, the other factors governing the granting or refusal of permission to effect the desired payment.
(c) Any difference in requirements or procedure for particular categories of importers, e.g., established traders, industrial importers, government departments, etc.
(d) Any official requirements which delay payments for imports of all commodities or those of particular types or origins until some period after arrival of the goods.
(e) The control procedure applied to supervise the valuation of imports.
7. Describe your treatment of payments by residents to non-residents for the various types of invisibles, giving details of any limitations or conditions attaching to approval, including any differences of treatment according to country or currency. (A list of typical invisible items is attached for your guidance.)
8a. Where there is a system of exchange licensing state the period of time normally taken—(i) between applying for and receiving an exchange license; and (ii) between receiving an exchange license and the exchange being made available.
b. Where, in the case of payments normally approved, the actual granting of exchange is subject to delay, describe the conditions under which exchange is released, waiting list procedures, priorities for different types of payment, and differences of treatment according to the currency for which application is made.
9. Describe any obligations imposed on importers and other residents prescribing the method or channel of payment to persons abroad, e.g., in a particular currency or to a particular type of non-resident account or through a specified institution. The description should cover any difference in the general nature of the obligations according to the country (or group of countries) to which payment is to be made.
10. Give details of any official regulations requiring that deposits be made in advance of the making of international payments or of the opening of letters of credit.
11. Give details of any obligations requiring exporters and other residents to surrender exchange to an authorized bank or other authority. To what transactions and to what currencies are such obligations applied? Describe the control procedures applied (i) to enforce these requirements and (ii) to supervise the valuation of exports.
12. Where the surrender of exchange receipts is a requirement of your system, describe any exceptions such as:
(a) Where residents are allowed to retain foreign exchange receipts to make payments abroad for purposes for which they would otherwise be permitted to purchase exchange.
(b) Where exchange receipts may be retained, used, or disposed of in a manner which would otherwise not be allowed, or be allowed only under less favorable conditions, e.g., as an incentive for export drives. The description should indicate (i) the foreign currencies and the types of exports (goods and services) to which the arrangements apply; (ii) the conditions under which the proceeds may be retained; (iii) the purposes for which the proceeds may be used; (iv) the nature of the market in which the proceeds may be sold.
The answer should include a brief description of the control measures to supervise the operation of the arrangements.
13. Give details of any official requirements existing in your territory limiting the free and immediate receipt and use by your residents of the full local currency equivalent of the foreign exchange surrendered by them.
14. Describe any obligations imposed on exporters and other residents prescribing the method or channel by which payment should be received from abroad, e.g., in a particular currency, from a particular type of non-resident account, or through a specified institution. The description should cover any differences in the general nature of the obligations according to the country (or group of countries) from which payment is to be received.
15. To the extent not covered in your answers to questions 11-14, describe the nature and functioning of your export control system in sufficient detail to show how the system works in practice.
Use of Non-Resident Accounts
16. Where your system provides for the maintenance by non-residents of accounts in your currency, describe the nature and types of such accounts and how they may be operated and used for making international payments. The description should cover any provisions made for the account holder to obtain conversion into his own currency of amounts credited to his account.
17. If private barter transactions are permitted, other than in isolated and exceptional cases, give brief details of the commodities and the countries involved, and indicate approximately what percentage of total exports takes place under such arrangements.
Payments and Clearing Agreements
18. To the extent not covered in your answers to previous questions, describe, in general terms, how the various methods of payment provided for under your exchange system and the extent to which payments are allowed to a particular country are conditioned by, or related to, the terms of any payments or clearing arrangements entered into by, or on behalf of, your territory with other territories.
Forward Exchange Transactions
19. Give a brief description of official requirements, rates, etc., in respect of forward exchange transactions.
20. Give details of limitations imposed on (a) the export and import of domestic currency notes; and (b) the export, import, use and negotiation within your territory of foreign currency notes.
21. To the extent not covered in the answers to previous questions, describe the limitations or conditions imposed upon inward and outward transfers of capital by :
(a) residents, and
In answering this question it is not necessary to give full details of measures such as complex requirements regarding transactions in securities. General requirements applying to capital movements and special points such as the following should, however, be covered :
Limitations on the receipt and the transfer of nonresident-owned capital assets.
Registration requirements for non-resident investments and particulars of any repatriation guarantees.
Special arrangements for foreign concessions (mining, etc.).
Requirements affecting resident-owned investments abroad and the disposal of their proceeds.
Requirements affecting transfers of capital for purposes other than investment.
Significant Changes in 1951
22. Point out the significant changes made during 1951 in your controls and restrictions in respect to international trade and payments, including changes in policies and administration. Also refer briefly to any major changes in your customs tariffs during 1951 which would be significant in this context.
(See Q. 7)
(i) International transportation of goods, etc.
Freights, including charter hire
Warehousing while in transit
Other transit expenses
International travel fares
(ii) Travel (except international travel fares)
Education expenses abroad
Travel for health or family reasons
Insurance and reinsurance premiums (excluding life insurance premiums)
Life insurance premiums
Insurance and reinsurance claims
(iv) Investment income
Interest on securities
Other interest payments
Profits from business activities
Rents on property
(v) Miscellaneous service items
Facilitation of trade and services
Agents’ commissions and other expenses of representation
Salaries and wages
Pensions and annuities
Film rentals and royalties
Other royalties and licenses
Registration fees for patents and trade marks
Subscriptions to newspapers and periodicals
Membership fees in associations
(vi) Donations, including migrants’ transfers
Remittances to familes abroad
Transfer of emigrants’ funds for own use
(vii) Repayment of commercial credit
(viii) Repatriation of investment capital
Depreciation of direct investment