HC Deb 15 November 1977 vol 939 cc192-3W
Mr. Forman

asked the Chancellor of the Exchequer whether he will list the principal exchange controls currently in force; and whether he will estimate the likely effect of the abolition of each control on the capital account of the balance of payments.

Mr. Robert Sheldon

The principal exchange controls apply to capital trans, actions by United Kingdom residents. These comprise direct and portfolio investment and certain personal transactions such as transfers by emigrants and cash gifts. There are controls also over the timing of receipts for exports and payment for imports and rules about retaining foreign currencies. On current payments in general, our controls are largely of a monitoring kind. The effect on the capital account of the balance of payments of abolishing any of these controls would depend to a great extent on such factors as the relative levels of interest rates here and abroad and the degrees of confidence in sterling and in our economic prospects at the time.

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