Foreign exchange regulations in the socialist countries

Abstract

The foreign exchange regulations of CMEA member countries exam ined in this paper1 flow from the state monopoly on foreign exchange, i.e., the state's right to concentrate in its hands all sources of foreign exchange and to decide how to allocate them most usefully, as well as to carry out international payment and credit dealings, including trade in foreign currencies. The foreign exchange monopoly and its function are reflected in the foreign exchange laws of the socialist countries, which lay down the rights and duties of state authorities, economic organizations, and citizens, and which also define the obligations of foreign persons when dealing with foreign exchange. The foreign exchange regulations of the socialist countries differ in various particulars. These differences stem from the historical condi tions in which the laws originated and developed, from the importance of external economic relations for national income formation, from the diversity of bodies empowered by the socialist state to operate the monopoly, and from the period in which any given regulation was issued. Differences exist in the actual concepts of foreign exchange law, in handling foreign funds, in relief from obligations granted to foreign nationals, in the exporting and importing of foreign currency funds, in operating foreign exchange controls, etc. As the international socialist division of labor among CMEA mem bers continues and deepens, and with growth in the number of joint ventures established by two or more enterprises from two or more member countries, we can expect to feel the need to bring the basic provisions of foreign exchange law more into line with each other.