Exchange Rate Regime Sample Clauses

Exchange Rate Regime. The Central Reserve Bank of Peru, on behalf of the State and pursuant to legal provisions in force at the date of signing guarantee the Contractor will enjoy the exchange rate regime in force on the Date of Signing and, consequently, the Contractor will enjoy the right to the free availability, holding, use and disposition, both internally and externally, of foreign currency as well as free conversion of domestic currency into foreign currency in the open exchange market under terms and conditions set forth in this clause. In this regard, the Central Reserve Bank of Peru, on behalf of the State, guarantees the Contractor, pursuant to the legal regime in force on the Date of Signing, the following: a) Free availability to the Contractor of up to one hundred percent (100%) of the foreign currency earned by its exports of Controlled Hydrocarbons, same which may be deposited directly in its own bank accounts, locally or overseas. b) Free availability and right to freely convert into foreign currency up to one hundred percent (100%) of the national currency earned from its sales of Controlled Hydrocarbons in the domestic market, and the right of deposit directly in its own bank accounts, locally or overseas, both the foreign and domestic currencies. c) Right to maintain, control and manage bank accounts in any currency, both locally and overseas, and to control and freely use those accounts, and to freely maintain and dispose of abroad the funds deposited in those accounts without any restriction whatsoever. d) Notwithstanding the above, the Contractor has the right to freely dispose of, distribute, send or withhold abroad without any restriction whatsoever its net annual profits calculated pursuant to regulations in force.

Exchange Rate Regime. The Central Reserve Bank of Peru, on behalf of the Peruvian State and in compliance with the legislation in force at the Signature Date, guarantees that the Contractor shall be subject to the exchange rate regime in force on the Signature Date and, therefore, that the Contractor shall have the right to free possession, availability, use and disposal, both internally and externally, of foreign currency, as well as the freedom to exchange local currency into foreign currency on the open market, under the terms and conditions set forth in this Clause. The Central Reserve Bank of Peru, on behalf of the Peruvian State, guarantees the Contractor (or each one of the enterprises which made up the Contractor) the following, in accordance with the regime in force on the Signature Date. a) Free disposal for Contractor of up to one hundred per cent (100%) of the foreign currency generated by its exports of Fiscalized Hydrocarbons, which may be deposited in its bank accounts in Peru or abroad. b) Free disposal of and the right to convert freely into foreign currency, up to one hundred per cent (100%) of the Local currency generated by the sale of Fiscalized Hydrocarbons in the Peruvian market and the right to deposit directly in its bank accounts in Peru or abroad, both foreign currency and local currency. c) The right to maintain, control and operate bank accounts in any currency, either in Peru or abroad, to exercise control over and enjoy free use of such accounts and to maintain and freely dispose of the funds in such accounts, abroad, with no restriction whatsoever. d) The above paragraphs notwithstanding, the Contractor’s right to dispose of freely, distribute, remit or retain abroad with no restriction whatsoever, its net annual profits determined in accordance with the law.

Exchange Rate Regime. Countries impose varying levels of control on their exchange rates. A more restrictive regime—for example, a currency board or a hard peg—stabilizes a country’s currency and thus reduces the volatility of trade. Countries with floating currencies, in contrast, may experience sudden spikes of imports or exports as their currencies rise and fall on markets. Countries with more flexible currency regimes are thus more likely to experience sudden shifts in their preferences over tariff rates, and should thus prefer higher levels of binding overhang.

Exchange Rate Regime. The exchange rate regime is generally positively correlated with binding overhang, as the flexibility hypothesis expects. The pattern is largely consistent inside and outside the region, and across products, further supporting the flexibility hypothesis.