157
84-
better than the first. The same process was
repeated when in August 1946 and Fobruary 1947 the Central Bank found itself forced to acknowledge now rates of CND 3,550 and CND 12,000 respectively to the U.S. dollar.
The rovision of the rate in February 1947 was accompanied by strong measures against speculators, regulations requiring the surrender of private holdings of foreign exchange and gold, and promises of plans for stricter rationing, wages and prices control and economy in Government expenditure. This burst of
cncrgy on the part of the authorities produced good
results for a fow wooks. The black markets thon
reappeared as flourishing as over, the now rugulations became a doad lcttor, and thu further measures promiscù did not materialiso.
The Chinese Government have recent ly introduced now measures govorning foreign exchange transactions, which at first sight are a decided improvement on carlier attompts. It was announced on August 17th that the "official" cover rate of 12,000 to the U, S. dollar will henceforth be available only for licenced imports of curtain essential imports like cotton, rico, wheat and
coal. All other transactions must be carried out at
rates fixed daily by a net Foroign Exchange Equalisation
Fund Committee, stablished by the Contral Bank of
China, which may adjust the open market rate of foreign
exchange to meet market conditions.
**
It is still too early to judge all the effects of the
now scheme. If realistically handled, it could bring
about the elimination of the black market in Shanghai,
but/
No comments yet.
Private notes are available after approval.