ITALIAN PANEL URGES EXCHANGE LIBERALIZATION
Liberalization of Italy's foreign exchange
controls should be "gradual" but also "reasonably rapid," a report
issued by a study committee nominated by the Italian Treasury
Ministry said.
   The report, looking at the country's financial development
prospects, said Italy's large public sector deficit and growing
public debt were among the considerations that made a gradual
liberalization preferable.
    The report also favoured retention of the lira's six pct
oscillation band with the European Monetary System (EMS) during
the liberalization process in order to lessen short-term
domestic interest rate fluctuations which could result from
portfolio adjustments.
    The lira's fluctuation margin is currently significantly
higher than that allowed for other EMS currencies.
    Italy has over recent months announced a series of
deregulation moves in response to a European Community
directive aimed at creating a genuine common market in goods,
services and finance by 1992.
 Reuter
