Forwards "Dry Up" In Punt And Peseta As Exchange Controls Strangle Market

BANKS

The reimposition of exchange controls last week in the Spanish peseta and the Irish punt has completely dried up the forwards market in the two currencies, say traders in London. The controls, imposed to stem speculative selling of the peseta and the punt in the wake of the EMS crisis of the last weeks, essentially return the two markets to their status before the gradual deregulation of the past few years.

Although the controls are expected to be lifted soon--and must be lifted by the end o

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