Chapter

Nonmember Countries

Author(s):
International Monetary Fund. External Relations Dept.
Published Date:
September 1961
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Cambodia

Exchange Rate System

The Cambodian Riel is defined as having a weight of 25.3905 milligrams of fine gold. Transactions in foreign currency are carried out on the basis of the rates published by the National Bank of Cambodia. These basic rates are 35 riels = 1 U.S. dollar, 98 riels = 1 pound sterling, and 10 riels = 1 French new franc. An effective rate of 60 riels = 1 U.S. dollar applies to the exchange of foreign currency by foreign tourists staying at certain hotels.

Administration of Control

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

Prescription of Currency

The method of payment or receipt for settlements with other countries is specified in each license. However, there are bilateral clearing accounts for settlements with Mainland China, Czechoslovakia, Poland, the U.S.S.R., North Viet-Nam, the Republic of Viet-Nam, and Yugoslavia, and settlements with Laos are made in U.S. dollars or pounds sterling, under the payments agreement with that country.

Nonresident Accounts

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

Imports and Import Payments

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

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

Payments for Invisibles

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

Exports and Export Proceeds

In general, exports require export licenses, but certain listed items may be exported against an export certificate showing how the exchange proceeds will be received and repatriated and supported by a banker’s guarantee. Exports must be recorded with an authorized bank and the exchange proceeds surrendered. However, the following percentages may be retained in special EFAC (Exportations—Frais Accessoires) accounts: 13 per cent of the proceeds of exports payable in U.S. or Canadian dollars, certain other convertible currencies, or externally convertible European currencies; 10 per cent of the proceeds of exports payable in other currencies or within the framework of bilateral payments agreements; and 40 per cent of the proceeds of exports of kapok payable in convertible francs. Balances on EFAC accounts may be used by the exporter or supplier of the goods either to pay certain commercial expenses or to pay for imports of any merchandise that is not prohibited, or for free sale at any exchange rate which may be obtained. Convertible currencies in EFAC accounts may be exchanged for other convertible currencies, with the prior approval of the National Exchange Office.

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

Proceeds from Invisibles

All residents of Cambodia, other than foreigners, must surrender to an authorized bank foreign exchange received by them. Certain hotels acting as agents of the authorized banks in purchasing foreign exchange from nonresident travelers may keep 15 per cent of such foreign exchange in an EFAC account. Certain hotels are authorized to pay their guests a premium of 25 riels per US$1 on their foreign exchange encashments.

A traveler may bring in not more than 400 riels in domestic banknotes. Foreign banknotes may be brought in freely, subject to declaration, but residents have an obligation to surrender such notes within seven days.

Capital

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

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

For foreign investments made before May 31, 1956, profits may be remitted abroad after payment of an Exceptional Equipment Tax, as follows: On profits relating to the year 1959, the tax rates are 30 per cent on profits of rubber plantations, 45 per cent on profits of companies whose activities are vital for the Cambodian economy, and 50 per cent on profits of other companies recognized as useful for the economic development of Cambodia. The tax rates on profits of foreign companies with head offices in Cambodia are reduced by 10 per cent for companies whose capital is more than 40 per cent Cambodian and by 5 per cent for companies whose capital is between 30 per cent and 40 per cent Cambodian. In the event of liquidation of such investments, 10 per cent of the original capital may be remitted each year.

Changes during 1960

January 1. The payments agreement with Laos, signed on October 10, 1959, came into force. It provided for payments to be made in U.S. dollars or pounds sterling.

January 16. An instruction was issued to the authorized banks bringing into effect the bilateral payments agreement of November 19, 1958 with North Viet-Nam. The new arrangements provided for payments to be made through a clearing account maintained in pounds sterling.

February 5. The payments agreement with the Republic of Viet-Nam of September 24, 1955, which had been suspended in 1958, re-entered into force. Payments would be made through a clearing account in riels maintained by the National Bank of Cambodia in the name of the National Bank of Viet-Nam.

April 2. A bilateral payments agreement with Yugoslavia came into effect.

July 1. Hotels acting as agents of the authorized banks in purchasing foreign exchange from nonresident travelers could keep 15 per cent of such foreign exchange in an EFAC account, instead of 10 per cent as previously.

October 15. A premium of 25 riels per US$1, making an effective rate of 60 riels per US$1, was given to tourists who, with a passport visa duly accredited by Cambodian consular authorities abroad, stop at hotels of the Khmer Royal Hotels Company of Siemreap-Angkor and purchase riels against foreign currency.

Laos

Exchange Rate System

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

Prescription of Currency

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

Imports and Import Payments

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

Exports and Export Proceeds

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

Payments for and Proceeds from Invisibles

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

Capital

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

Changes during 1960

No significant changes took place during 1960.

Liberia

Exchange Rate System

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

Prescription of Currency

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

Imports and Import Payments

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

Exports and Export Proceeds

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

Payments for and Proceeds from Invisibles

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

Capital

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

Changes during 1960

No significant changes took place during 1960.

New Zealand

Exchange Rate System

The official rates for the New Zealand Pound in terms of non-sterling currencies are based on the fixed rate for sterling against New Zealand pounds and the rate for the currency concerned in the London market. As at December 31, 1960, the trading banks’ rates for telegraphic transfers on London were ENZ 100/7/6 buying, and £NZ 101/–/– selling, per UK£100, and for U.S. dollars they were US$2.7993 buying, and US$2.7676 selling, per £NZ 1.

Administration of Control

Exchange control authority is given to the Minister of Finance, who, in accordance with the terms of the regulations, has delegated it to the Reserve Bank of New Zealand; however, much of the routine supervision is done by the trading (commercial) banks. Import licensing is handled by the Customs Department. Other government departments, such as the Department of Industries and Commerce, the Treasury Department, and the Department of Agriculture, function in a consultative capacity in regard to various aspects of the controls. Matters of policy are decided by the Minister of Finance, with the advice of interested departments and the Reserve Bank.

Prescription of Currency

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

Imports and Import Payments

Most imports are subject to license. An import licensing program is published for each calendar year. The program for 1961 lists the treatment of various commodities as follows (except for licenses covering motor vehicles, importers who are granted a license may order the goods from any overseas country): Imports marked “E” are exempt from license. For imports marked “A,” licenses are issued to the extent applied for. For imports marked “R,” licenses are granted initially to the extent of 100 per cent of the value of licenses that had been granted for imports of similar goods from all sources in the 1960 licensing period up to August 31, 1960, and further licenses are granted in replacement of the value of actual imports made under current 1961 licenses up to a maximum of 150 per cent of the value of the licenses granted for imports of similar goods during the 1960 licensing period.1 For imports marked with a percentage of 1960 licenses, licenses are granted for the indicated percentage of the value of the licenses granted for imports of similar goods from all sources during the 1960 licensing period. For imports marked with a percentage of annual imports, licenses are granted for the indicated percentage of the value of licenses granted for imports of similar goods by the importer in his own name from all sources during the calendar year specified. For imports marked “C,” applications for licenses are considered individually. For imports marked “S,” applications for licenses are considered only in the event of seasonal shortages. For imports marked “D,” no allocation is provided and licenses are granted only in exceptional circumstances. For imports marked “T,” token licenses are granted up to 10 per cent of the value of imports of similar goods from all sources made by the importer in his own name during the calendar year 1956, if the goods to be imported were not subject to a token allocation in 1960, or up to 100 per cent of the value of licenses granted for imports of similar goods from all sources during the 1960 licensing period. For items designated “M,” separate licenses are granted for scheduled countries2 and for other than scheduled countries. For certain items designated as “Basic,” licenses are granted by reference to a previous licensing period.

In addition, the 1961 import licensing schedule continues the provision for “Industry Groups” imports, for which an importer having license entitlement to any of the items listed in a group may, if he so elects, apply for a group license rather than for licenses for the individual items.

Payments for Invisibles

Payments for invisibles require the approval of the Reserve Bank. For nonbusiness travel to any part of the world, there is a travel allowance of £NZ 750 for each adult in any period of 12 months, except that, for the first period of 12 months spent overseas, the entitlement is £NZ 1,250 if the traveler has not received an exchange allocation for overseas travel in the three years before the beginning of the current journey.3 The remittance of profits, interest, and dividends earned by nonresidents is permitted freely, subject to formal approval by the Reserve Bank. Other remittances are treated on their merits. The export of New Zealand banknotes is prohibited, except that travelers may take with them £NZ 15 in New Zealand banknotes if they are traveling to the United Kingdom and £NZ 7 if traveling to any other country, in denominations of £1 and 10s.

Exports and Export Proceeds

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

Proceeds from Invisibles

All receipts of currencies other than those of the Sterling Area must be offered to the Reserve Bank; they may be sold to a trading bank in New Zealand, but they may not otherwise be sold or dealt in without permission. No control is exercised over the disposal of receipts of Sterling Area currencies, other than those received from exports and from the sale of New Zealand assets to nonresidents. Travelers may bring into the country unlimited amounts of foreign exchange and/or domestic currency.

Capital

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

Changes during 1960

March 9. The revised import licensing schedule for 1960, involving a relaxation of import restrictions on about 300 items, was announced: A new category “A” was designated for 31 items, for which licenses would be issued to the extent applied for. The “R” (replacement) category was extended to cover a further 52 items of a varied nature. The “T” (token allocation) category was also expanded to include 47 additional items which were formerly included in the “D” (no allocation) category. Import allocations were increased for about 90 “Basic” items, some up to 100 per cent of 1956 imports. Additional funds were allocated for about 50 items for which no changes were made in the published allocations; most of these are included in the “C” (individual consideration) category. The designation “M” was removed from various timber items, thus making their importation possible from any country in the world.

April 7. It was announced by the Minister of Customs that larger imports of motor vehicles would be permitted. Outstanding excess balances of existing licenses would not be deducted from the newly issued licenses for assembled motor vehicles, as in the past, thus increasing the availability of built-up motor vehicles, especially motorcars. The allocation for motorcycles, motor scooters, etc., was increased by 20 per cent of existing 1960 licenses. Licenses for unassembled commercial vehicles were divided into two classes, according to gross laden weight. Those weighing 10,000 pounds and over were classified in the “R” (replacement) category, while the remainder were classified in the “C” category, for which applications for licenses are considered individually.

July 21. The Minister of Finance announced that the allocation for pleasure travel would be increased to £NZ 1,250 a year, provided that the traveler had not received funds for overseas travel in the previous three years.

September 26. The import licensing schedule for 1961 was issued: The “R” (replacement) category was extended by 44 items; the “A” (amount applied for) category was made applicable to 63 items; the number of items in the “T” (token allocation) category was increased to 157; a new designation “S” was provided to meet the needs for agricultural products during local shortages. (See also section on Imports and Import Payments, above.)

Switzerland

Exchange Rate System

The gold content of the Swiss Franc is established at 63310 (= 0.20322…) gram of fine gold. The Swiss National Bank maintains the U.S. dollar rate in a free market between limits of Sw F 4.295 buying, and Sw F 4.45 selling, per US$1. The free market rate on December 31, 1960 was Sw F 4.305 per US$1. Market rates for externally convertible European currencies1 vary between limits resulting from the dollar rate for the Swiss franc in relation to the dollar rates for the other currencies. Exchange is controlled in respect of most transactions with countries with which Switzerland has bilateral agreements or in respect of which Switzerland has enacted autonomous regulations. Bilateral agreements cover Switzerland’s trade and/or payments with nine countries or monetary areas,2 and Switzerland controls its payments with two others.3 In accordance with the provisions of several of these agreements, official rates are applied to transactions covered by the agreements. This domain of regulated settlements is known as the sector of controlled payments. All settlements outside this sector (including those with all other countries) may be made freely at free market rates.

Exchange Control Territory

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

Administration of Control

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

Prescription of Currency

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

Nonresident Accounts

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

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

Imports and Import Payments

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

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

Payments for Invisibles

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

Exports and Export Proceeds

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

Proceeds from Invisibles

Proceeds from invisibles received through the sector of controlled payments are converted into Swiss francs in observance of the existing regulations. Proceeds received in convertible currencies are freely disposable. The import of Swiss and foreign banknotes is free.

Capital

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

Banknotes

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

Changes during 1960

January 15. The control of payments was abolished for Uruguay.

May 1. The limits below which payments in the sector of controlled payments could be made without requiring prior documentation were unified.

With effect from April 13, 1961, items marked “R” were divided into two categories, those for which no further licenses would be issued in the 1961 licensing period, and the others, which would be treated as “C” items, i.e., allocations would be made on the basis of individual consideration.

Scheduled countries are listed in the New Zealand regulations as Bolivia, Canada, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Korea, Liberia, Mexico, Nicaragua, Panama, Philippines, United States, and Venezuela.

On April 14, 1961, it was announced that the amount of this automatic facility was reduced to £NZ 1,000 and that the qualifying period was changed from three years to five years.

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

Bulgaria, Czechoslovakia, Greece, Hungary, Poland, Rumania, Turkey, United Arab Republic (Egyptian Region), and Yugoslavia.

Eastern Germany and East Berlin, and Iran.

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