TRADE PLANS
NEW TAXES & RESTRICTIONS IN MEXICO DOUBLE EXCHANGE RATE PROPOSED ATTEMPTS TO PEG CURRENCY ' By Telegraph.—Press Association. Copyright. NEW YORK, July 2. The “New York Times” Mexico City correspondent says that the Government has announced plans to impose a 12 per cent tax on all exports, including raw materials, simultaneously establishing a quasi-permanent limitation of imports, which come largely from the United States, by establishing a double exchange rate. Tentative plans include pegging the peso at five to the dollar for exports and four to the dollar for imports, thus apparently establishing a central bank control. The objects of this are said to be, first, to make up the budget deficit resulting from the loss of petroleum taxes and the subsequent economic collapse, and, secondly, to subsidise exports and maintain imports at a minimum. The peso, which has fallen gradually after the expropriation of the foreign oil holding, when it was fixed at 3.60 to the dollar, reached 4.75 today.
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Wairarapa Times-Age, 4 July 1938, Page 8
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161TRADE PLANS Wairarapa Times-Age, 4 July 1938, Page 8
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