The Treasurer’s Guide to Trade Finance

Luxembourg

Economic and trade overview

Key figures

Economy 2011 Trade 2011 (USD billion)

GDP (USD) 59 bn Goods Exports 19

GDP per capita (USD) 113,877 Imports 26

GDP volume growth (year-on-year) + 1.7% Net – 7

Population 0.52m Services Exports 71

Interest rate (for corporations funding stocks

up to one year) 2.64%

Imports 42

Net + 30

Exchange rate EUR / USD (year average) 0.7194

Source: IFS, IMF, January 2013

BoP (goods, services & income) as % of GDP + 9.6%

International/Regional memberships

European Union (EU): founding member

since 25 March 1957. Luxembourg is also

a member of the European Economic Area

(EEA).

International Monetary Fund (IMF):

since 27 December 1945.

World Trade Organization (WTO):

since 1 January 1995.

Government trade policy

ƒ Luxembourg implements the trade

regulations, commercial policies and customs

code of the EU (ec.europa.eu/trade).

ƒ Luxembourg trades freely with its fellow EEA

member states as well as Switzerland.

ƒ The EU has in place bilateral trade

agreements with 36 countries and regional

trade agreements with a number of trading

blocs.

ƒ National export credit insurance provider:

Office Du Ducroire (www.ducroire.lu).

ƒ The EU maintains 74 free trade zones,

though none is located in Luxembourg.

Currency and exchange controls

Official currency: Euro (EUR).

Exchange rate arrangement: free floating.

Luxembourg does not impose foreign exchange

controls.

ƒ The acquisition of securities from outside the

EU by Luxembourg residents is restricted

if the assets account for over 5 percent of

the technical provisions of a private pension

fund or insurance company.

Bank accounts

Permission to hold currency accounts

Within

Luxembourg

Outside

Luxembourg

EURForeign currency EURForeign currency

Resident

company ✔ ✔ ✔ ✔

Non-resident

company ✔ ✔ ✔ N/A