Foreign exchange certificate
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A foreign exchange certificate (FEC) is a tool for foreign exchange control in countries where the national currency is subject to exchange controls or is not convertible.{{cite web|title=Currency Certificate|url=http://www.investopedia.com/terms/c/currency_certificate.asp|publisher=investopedia|accessdate=19 April 2014}} The arrangements vary significantly case by case.
Common types
Some of the main types of FEC are:
- A certificate for purchasing foreign currency at a specified rate, often for a specified purpose, such as financing imports. This type of certificates were required in many European countries after World War II.
- A certificate denominated in local currency, which foreign citizens are required to use for some or all of their purchases. The exchange rate may be more favourable for the visitor than the official commercial rate. The purpose is to channel the foreign exchange to the state coffers instead of the black market. This type of FECs was in use in Germany in 1931–1948 and China in 1980–1994.
- A certificate to which local citizens are required to exchange any foreign currency they receive as part of their salary or as remittances from relatives or friends who live abroad. These certificates may be accepted as payment in specific stores, which otherwise sell goods only to foreign citizens in exchange for foreign currency. This type of FECs was issued in the Soviet Union between 1961 and 1989.
- Certificates for circulation in closed economic zones (for example, the Svalbard ruble for employees of the Arktikugol coal mines). The purpose of such certificates was to prevent a shortage of goods in the event of an uncontrolled influx of money from outside the zone.
Examples
; FECs denominated in national currency but with a special exchange rate / rules of circulation:
- Soviet Union (Torgsin cheques in the 1930s, and various FEC types in 1961–1991, of which Vneshposyltorg cheques were the most common ones){{cite web|title=RUSSIA Paper Money, Foreign Exchange Certificates, 1961–91|url=http://www.numismondo.net/pm/rus/indexFX10.htm|archive-url=https://web.archive.org/web/20160313045329/http://www.numismondo.net/pm/rus/indexFX10.htm|archive-date=13 March 2016}}
- China (1980–1994){{cite web|title=Provisional regulations of the Bank of China foreign exchange certificate|url=http://www.asianlii.org/cn/legis/cen/laws/protbocofec624/|accessdate=19 April 2014}}
- East Germany (forum cheques, pegged to the West German D-Mark)
- North Korea (separate certificates and tokens for "socialist visitors" and "capitalist visitors" were in use between the 1970s and 2008){{cite web|title=North Korea new variety foreign exchange certificate reported|url=http://www.banknotenews.com/files/93a649a61aef16460ce361b0300d1bbc-1048.php|archive-url=https://web.archive.org/web/20140419205820/http://www.banknotenews.com/files/93a649a61aef16460ce361b0300d1bbc-1048.php|archive-date=19 April 2014}}
- Cuba (from 1985, several different FECs (INTUR cheques) were issued, which were superseded when the US dollar was allowed to circulate, together with the convertible peso)
- Czechoslovakia (Tuzex)
- Bulgaria (Balkan Tourist, Corecom and People's Bank of Bulgaria cheques){{cite web|title=Bulgaria paper money catalog and Bulgarian currency history|url=http://www.atsnotes.com/catalog/banknotes/bulgaria.html|publisher=atsnotes|accessdate=19 April 2014}}
- Communist Romania (NAVROM cheques){{Cite web |url=https://banknote.ws/COLLECTION/countries/EUR/ROM/ROM-FEX.htm |title=ROMANIA – Foreign Exchange Certificates |access-date=2020-05-23 |archive-date=2022-07-20 |archive-url=https://web.archive.org/web/20220720161231/https://banknote.ws/COLLECTION/countries/EUR/ROM/ROM-FEX.htm |url-status=dead }}
- Vietnam
- Communist Albania – it was illegal to exchange them for regular Albanian lek banknotes.
- Yugoslavia (Putnik cheques in the 1950s, People's Bank of Yugoslavia cheques in the 1980s)
; FECs denominated in a foreign currency (usually the US dollar):
- Myanmar (Burma) (until March 2013){{cite web |url=http://www.mizzima.com/business/7722-burma-to-abolish-foreign-exchange-certificate-in-2013.html |title=Burma to abolish foreign exchange certificate in 2013 |publisher=Mizizma |date=9 August 2012 |archive-url=https://web.archive.org/web/20120812001228/https://www.mizzima.com/business/7722-burma-to-abolish-foreign-exchange-certificate-in-2013.html |archive-date=12 August 2012}}
- Poland{{cite web|title=POLSKA RZECZPOSPOLITA LUDOWA – POLAND Foreign Exchange Certificates, 1969 Issues|url=http://www.numismondo.net/pm/pol/indexFX21.htm|publisher=numismondo|accessdate=19 April 2014}} (Bon Towarowy PeKaO)
- Zimbabwe (Zimbabwean bond notes and Zimbabwean bond coins){{Cite web |url=https://banknote.ws/COLLECTION/countries/AFR/ZIM/ZIMFXW2009-0050.htm |title=ZIMBABWE |access-date=2020-05-23 |archive-date=2020-05-05 |archive-url=https://web.archive.org/web/20200505004943/http://www.banknote.ws/COLLECTION/countries/AFR/ZIM/ZIMFXW2009-0050.htm |url-status=dead }}
Gallery
File:Beryozka razm certificate 1 kop.jpg|USSR FEC for Beryozka shops, 1 kopeck, blue stripe, 1966
File:Beryozka certificate with yellow stripe - 1 kop.jpg|USSR FEC for Beryozka shops, 1 kopeck, yellow stripe, 1966
File:Cheki Vneshtorgbanka Ser.A.jpg|USSR FEC for sailors, Series A, (issues from 1967 to 1980)
File:Чеки.JPG|USSR Vneshposyltorg FEC, 1 and 10 kopecks, 1976
File:Чек Внешпосылторга.jpg|USSR Vneshposyltorg FEC, 2 kopecks, 1976
File:Чек Внешпосылторга для военной торговли 10 копеек.jpg|USSR Vneshposyltorg FEC, 10 kopecks, for the military, 1976
File:Чек.JPG|USSR Vneshposyltorg FEC, 3 rubles, 1976
File:Bon.jpeg|PeKaO FEC, Poland
File:Odběrní poukaz do Tuzexu.jpg|Tuzex FEC, Czechoslovakia
File:GermanyDemRepPFX6-100Mark-1979-donatedmjd f.jpg|Forumscheck, East Germany
References
{{Reflist}}
External links
{{Commons category|Foreign exchange certificate}}
{{Portal|Money|Numismatics}}
- [http://www.bis-ans-ende-der-welt.net/China-X-B-En.htm Chinese foreign exchange certificates (FEC)] {{in lang|en|de}}
- [http://www.bis-ans-ende-der-welt.net/DDR-X-B-En.htm East German forum checks] {{in lang|en|de}}
{{Authority control}}
Category:Currencies of Albania
Category:Currencies of Bulgaria
Category:Currencies of Myanmar
Category:Currencies of Czechoslovakia
Category:Currencies of Germany
Category:Currencies of Romania
Category:Currencies of Vietnam
Category:Currencies of Yugoslavia
Category:Currencies of Zimbabwe