asked the Minister for Finance if he will state what monetary arrangements have been made to carry on our trading with countries outside the sterling area during the year 1947; and what, if any, monetary restrictions attach to trading between this country and countries in the sterling area.
Ceisteanna—Questions. Oral Answers. - Currency Restrictions.
I assume that the Deputy refers to the Foreign Exchange Control dealing with the method of payment for imports into or exports from this country. These matters are regulated under Emergency Powers (Finance) Orders. As regards imports from outside the sterling area, it is not anticipated that any difficulty will arise during 1947 in effecting payment in the currency of the country of origin of the goods or other appropriate manner, provided I am satisfied that the imports are necessary in the national interest.
It is still essential to control financial transactions with countries outside the sterling area so as to avoid undue strain on the foreign exchange resources available to us.
As regards our exports to countries outside the sterling area, payment will be received in the currency of the consignee country or other appropriate manner.
No restrictions are applied in relation to payments in respect of imports from or exports to the countries in the sterling area unless the goods originated in or are destined for a country outside that area.
Is it the intention of international authorities to permit the free exchange of sterling into dollars in the course of the current calendar year, or will the restriction on the conversion of sterling balances into hard currencies continue beyond the coming into operation of the Bretton Woods Agreement?
The Deputy is raising a very large question by way of a supplementary. The Deputy knows that the Bretton Woods Agreement contemplates that at some time or other current balances will be free to be sent from one country to another —that is, among countries that have signed that agreement. The British American loan arrangement which was signed in Washington last December 12 months contemplates that in the middle of this year sterling receipts arising out of current transactions of sterling area countries will be freely convertible for current purposes.
That will apply to our currency?
That will affect our current balances as well as those of all other countries concerned.