The new Foreign Exchange Act was passed by the Parliament and is effective as of 1 October 1995. The Act introduces substantial liberalization in current and capital account transactions. According to the draft version, the most important changes are as follows:
- no difference in treatment of physical persons and legal entities will apply,
- full convertibility of Czech currency for current account transactions (i.e. contractual undertaking of payments to foreign exchange non-residents, transfers from Czech accounts of non-residents, etc.) was introduced
- offering duty abolished, i.e. foreign exchange residents are not obliged to offer hard currency earnings to the bank,
- "direct investments" abroad are allowed without foreign-exchange permission,
