FOREIGN EXCHANGE

Hokitika Guardian, 22 February 1932, Page 8

FOREIGN EXCHANGE

NATIONAL ARRANOKA!ENTS. ’VARIOUS PHASES OK CONTROL. A recent report issued by the British Board oi' Trade summarised the arrangements made by the various countries for the control of foreign exchange. The following items cover the principal counries:— Only the Austrian National Bank and bodies authorised by that bank with the consent of the Minister of Rina nee may deal in foreign means of payment, the rate in Austrian currency being fixed by the hank. The permission of the Natioal Bank is necessary before funds, whether in Austrian or foreign currency can he transferred abroad or credited to the account of a foreigner in a bank in Austria. Preference in allocating foreign exchange is understood to be given for the purchase of raw articles and other articles of prime necessity. CZECH-SLOVAKIA. By a decree of October2, the Czechoslovakian Government reintroduced a law of 1924, whereby dealings in foreign exchange were controlled by the National Bank of Czecho-Slovakia. Under its provisions, compulsory surrender, if required was to be made of foreign currency and other receipts from abroad. A further measure required declaration by the National Bank of foreign currencies or securities deposited abroad by any residents in Czechoslovakia. Payment abroad is controlled by the National Bank, or other authorised insttutons. Before consent is- given to release foreign exchange, the trader must produce evidence of a liability arising 'from a definite importation of goods. DENMARK. Except so far as ,an exporter can show that he requires exchange in the near future to cover payment due for goods imported by himself, all amounts an exporter has abroad as payments for goods exported from Denmark have to be converted into Danish currency without unnecessary delay through the National Bank or through such Danish banks or members of the Copenhagan Stock Exchange as may be authorised by the National Bank. The transfer of Danish crowns in currency, cheques or draft, may take place only with the permission of the National Bank. Preference in the distribution of the exchange available it to be given to raw materials and other requirements of producers, especially exporting industries. FINLAND. A system of conversation of foreign exchange has been in opuuitmn as.a resuit of a voluntary ngrc.-mefu ■ uveen tile Bank of Finland ami the banks and business organisations, foreign currency was only to be made available for bank reimbrusement s falling due, for certain classes of essential imports, against deposits on cash loan accounts, and for interest and amortisation of debts. Tranactions outside the banks, however, were not illegal, and took place in inflated rates. The greater part of exporters paid over their surplus foreign currencies to the banks. From December 9 the Bank of Finland decided that the banks should deal at the effective rates owing to the growing tendency to operate outside the banks. The rate then went to about 210 Finnish marks to the Cl GERMANY.

A decree prom united by the German Government on July 18 compelled all persons liable to German property tax (in practice, all residents in Germany irrespective of nationality) to declare to the Reiclisbank their holdings of foreign exchange of all kinds, e.g. actual currency, cheques, bills and other claims to receive foreign currency. The Heichsbank hand an option to purchase foreign exchange so offered, unless it decided that its retention by the owner was justified on economic grounds. All foreign exchange has no"' to lie offered within three days of' acquisition. A similar declaration of foreign assets had to be made to the taxation authorities By virtue of the various currency decrees that have since been issued, the German Government has obtained the widest powers to control the export of currency. Exchange win only he bought or sold through the Reiclisbank or institutions licensed by it. GREECE • The Bank of Greece has the monopoly of the sale and purchase of foreign exchange. Other hanks can work only as agents of the Bank ol Greece. All foreign money obtained through exports must be surrendered to the bank. ITALY. By Royal decree-law of September 2<), the Minister of Finance is authorised to issue decrees tor the control ol dealings on exchange inloreign currencies. "No such decrees have yet been issued, hut it. is understood that some steps have bene taken to secure that only legitimate exchange requirements are met. NORWAY In a statement issued by tln- ••• ■ tinge*' of 11ic Bank ol Nor" a;, bei it was explained linn. .* to conserve .Yorways present and future supplies of foreign eurreiiev. it

had become necessary to c°utro] all exchange transactions including those for import trade, and that it is hoped to attain the end desired without the intervention of the States authorities. A central committee to consider “valuta” questions has been established, and consists of members representing the Bank of Norway and other banks. SWEDEN. The Riksbank lias come to an agreement with tile Swedish Bank Association for the adoption of certain measures for the limitation of credits with a view to restricting non-essential ini-, ports. The Riksbank has also taken steps to ration the currency market. ARGENTINA. A Control Commission was appointed to secure the restriction of exchange operation to the legitimate needs of trade. All exchange transactions, as from October IB last, require the. sanction of the Commission. The Comtro! Commission does not actually assign exchange, hut authorises its issue, and has fixed a rate, now maximum and minimum limits based <>n the United States dollar, within which banks may operate. Bank's'in Argentina forming part of the Banker’s Clearing House are authorised to engage in exchange operations, and have been instructed to apply their exchange resources primarily to the settlement of accepted bills.