# Advance of funds in foreign exchange

- Canonical URL: https://www.gerhardmerk.de/advance-of-funds-in-foreign-exchange
- Post ID: 591613
- Modified: 2023-07-25T20:47:21+00:00
- Language: en

## Definition

The foreign exchange authority provides an importer with foreign currency to import a good - such as: Gold - on the condition that the importer transfers the processed goods - e.g. gold jewelry, gold watches - to the foreign exchange market within a specified period of time: Gold jewelry, gold watches - within a specified period of time to the foreign exchange country and then deliver the foreign exchange proceeds to the authority. - By granting a corresponding debit quota, it can be achieved that this measure triggers strong incentives for foreign exchange-generating exports - in the example: very high value-added processing of the imported raw material gold. - See foreign exchange allowance procedure, unit value ratio. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 2.0.0