Italian monetary and exchange policies under fascism

Italy has developed a policy of self-sufficiency and exchange control in the last few years due to international pressure and sanctions. The exchange rates cease to be free; there is no arbitrage; and governmental agencies control the supply and demand for foreign exchange. Bilateral foreign-trade agreements are encouraged, and clearing agreements are concluded to pay for goods from abroad. Exporters are aided by special price dispensations. The internal price structure gets out of harmony with the international price equilibrium, such as it is. Banking, moreover, has become a virtual monopoly of the government. The I. R. I. made heavy loans both to industry and private banks, which soon became public banks. The Banca d'Italia ceased to be owned by private stockholders in 1936. The entire credit system gradually passed over to the control of the powerful committees of the government which rule the central bank.