Problems relating to Trade and Investment on France
12. Exchange controls |
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Issue |
Issue details |
Requests |
Reference |
| (1) Exchange Loss arisen from Rapid and Radical Changes in the Foreign Exchange Rate | - Non-operating loss has grown large due to the foreign exchange loss resulting from rapid and radical changes in the foreign exchange rate. - Radical exchange fluctuations prevail. As it stands, member firm's subsidiary (MFS) benefits from exchange gain on a direct export transaction in yen. Nevertheless, negotiation for raise in price is difficult. In a transaction with its parent company, the prevailing Yen depreciation enables MFS to offer special prices to its customers. However, MFS runs on a thin margin, so that if the exchange rate swings toward appreciation of Yen, it will instantly show operational loss: such is the severity of the fluctuation band. - It being export to member firm's subsidiary (MFS), its direct relevance is small. However, its impact surfaces on transactions in EURO (?). |
- It is requested that the Governments stabilise the foreign exchange rate in parallel with the economic stimulus policy. - It is requested that GOP takes step to: -- stablise foreign exchange fluctuations, and -- holds the fluctuation band within a few percents in 6-months. |
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