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Exchange Regulations

Exchange regulations are restrictions imposed by an importing country to protect its foreign exchange reserves. The importer's government sometimes requires an exchange permit before the importer can convert its own country's currency into the foreign currency needed to pay the seller (the exporter). The following resources can provide more information about the convertibility of one currency into another and the exchange regulations and challenges facing importers in certain countries:

Institute of International Bankers (http://www.iib.org)
This is an association of over 200 banks and financial institutions that operate in the U.S. and have their headquarters in 50 other countries. The association represents the interests of the international banking community before U.S. legislative and regulatory bodies, and serves as a source of information on international banking issues.

Credit Mutuel (http://www.cmutuel.com)
Credit Mutuel forms a national network of regional banks at European scale. Its site provides information on the progress of the European union, snapshot of the member states, banking regulations, news, and a currency converter. It also has the frequently asked questions and answers on the Euro.

Office if the Comptroller of the Currency (OCC) (http://www. occ.treas.gov)
This organization regulates banks in the United States. This site offers information about this agency, as well as press releases, publications, software, and consumer information.

Exchange Controls

Exchange controls relate to any government rule, law or regulation relating to foreign exchange currency and currency trading.  Governments impose various types of regulations on foreign exchange.  Some control all FX payments, some governments control certain typles payments.  Some governments regulate which entities can deal in foreign exchange transactions.  Some limit the amount of foreign currency that can be transferred at any given time to any given foreign creditor.

Edited by Michael C. Dennis.  Mr. Dennis is a consultant specializing in improving the quote to cash process.  He can be reached by email at mcdennis13@yahoo.com.