Foreign Exchange and Foreign Trade Act | Glossary

The Foreign Exchange and Foreign Trade Act is the Japanese law that is based on the freedom of cross-border dealings, including foreign exchange and foreign trade, and limits control and adjustment of them to the minimum necessary. It provides for duties to obtain permission on payments and capital transactions, reporting, and economic sanctions.

The competent ministers, such as the Minister of Finance and the Minister of Economy, Trade and Industry, administer the Act. The Bank of Japan handles tasks such as receiving applications, notifications, and reports¹.

The Act was enacted in 1949 as the Foreign Exchange and Foreign Trade Control Act. The 1998 amendment removed the word "Control" from its title².

Notes

Bank of Japan, "外為法とは何ですか？" (What is the Foreign Exchange and Foreign Trade Act?) (in Japanese). ↩
Ministry of Finance, "外為法の目的と変遷" (Purpose and history of the Foreign Exchange and Foreign Trade Act), main text (in Japanese). ↩

Notes

Related terms

Explained in detail