Foreign Exchange Law draft “free on principle, controlled the exceptions”.

For the purpose of putting free market economy into effect, the Foreign Exchange control Act that has been bringing into practice for 55 years is about to be abandoned and substituted by the Foreign Exchange Law. The vice-president of Central Bank of China, Syu Yi-Syong, contented that the Foreign Exchange Law is drafted and is “free on principle and controlled on the exceptions” oriented incase of its being under the impression of having foreign exchange being strictly and continuously controlled by Central Bank of China.

The major canonical affairs for Foreign Exchange Law include: to designate explicitly that Ministry of Finance be the central authority for foreign exchange administration, Central Bank of China be the central authority for foreign exchange business, in the ordinary period, the bank and other enterprises should all obtain permit and be controlled by the foreign Exchange Law when handling foreign exchange business; a scads of foreign exchange transaction should too be declared, it is compulsory to report to the Customs when carrying a certain amount of foreign currency into and out of the country. Whereas in the emergency period, for instance, under the circumstances of having the domestic economic disorder, the Executive Yuan is entitled to implement the Rules Governing Foreign exchange Control, announce with public notification to close the foreign exchange market, suspend or restrict all or some foreign exchange (2004.05)

CYJ/SH