Exchange controls were introduced in the UK at the beginning of the Second World War and

Embodied in the Exchange Control Act of 1947. These controls were abolished in 1979. Within the

European Union exchange controls were made generally illegal by the Single European Act.

Vocabulary Notes to Text 6.7.1.3

The banking system of dealings — банковская система сделок

Controlling the purchase and sale of currencies by residents alone — контроль (регулирование)

Покупки и продажи валют только резидентами

The domestic price level — уровень цены на внутреннем рынке

A balance-of-payments deficit — дефицит баланса платежей

6.7.1.4. Read and translate the text “Exchange Equalization Account in the UK” in written form.

By exchange equalization account (UK) we mean an account controlled by the Treasury and

Managed by the Bank of England which buys and sells sterling for gold and foreign currencies with

The potential object of offsetting major fluctuations in the exchange value of the pound and keeping

Th e spot market price for the pound around some required rate. The account was set up by the 1932

Finance Act after the abandonment of the gold standard in the previous year. The assets of the

Account include the gold and foreign exchange reserves and sterling, provided by the Exchequer,

Invested in treasury bills. Similar funds or stabilization accounts are operated by other countries.