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BELARUS: Currency control

2011, English

RESTRICTIONS ON CAPITAL TRANSFER OPERATIONS

Control by the National Bank. Certain kinds of transactions that involve non-residents and foreign currency require special permission from the National Bank.

  • Transactions subject to control. Such transactions usually involve real estate, establishment and purchase of shares in non-resident companies and loans to non-residents. Loans to Belarus companies require permit only if the provisions of a loan contract are “unusual” and the applicable loan rates are higher than predetermined statutory rates
  • Timetable. An application for the permit is usually reviewed within 15 business days.

CURRENCY EXCHANGE RULES

Foreign currency exchange transactions may only be performed through the banks. In addition to the straight exchange transactions with the banks themselves, the currency exchange may be performed (banks always acting as intermediaries) on the Belarusian Currency and Stock Exchange (BCSE).

At the date of publishing this newsletter there are two legal exchange rates – the official “National Bank rate” (NBR) and the “market rate”. The former is stated by the National Bank and is used to calculate taxes, obligatory sale of 30% of hard currency income (see below) and for some other purposes. Market rate is formed during the sessions on the Minsk Interbank Currency Exchange (www.bcse.by).

The unification of the exchange rates is now pronounced to be one of the main objectives of the government, but the time schedule is not currently clear.

OBLIGATORY SALES OF FOREIGN CURRENCY

Belarusian companies and individual entrepreneurs are obliged to sell 30% of revenues gained in foreign currency. The rule applies where the revenue is received as remuneration for the sales of goods, services, lease, and transfer of know-how, trademarks and other intellectual property. The rule does not apply to loan agreements, contributions into the share capital and in some other situations.

USE OF FOREIGN CURRENCY

The use of foreign currency (including securities and negotiable instruments) between residents is forbidden. There are some exceptions to this rule, i.e., loans between companies and where the permit for the use of foreign currency has been received from the National Bank.

The use of foreign currency as payment means between residents and non-residents is not restricted. In certain cases international agreements concluded by Belarus provide some limitations for such use.


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