Chapter

TAJIKISTAN

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2000
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Status Under IMF Articles of Agreement
Article XIVYes.
Exchange Arrangement
CurrencyThe currency of Tajikistan is the Tajik ruble.
Other legal tenderThe use of other currencies is allowed.
Exchange rate structureUnitary.
Classification
Managed floating with no preannounced path for the exchange rateThe official buying and selling rates of the National Bank of Tajikistan (NBT) are based on the rates resulting from multiple-bidding auctions held at the Tajik Interbank Foreign Currency Exchange (TICEX) in Dushanbe. In determining the amount to be auctioned, the NBT considers the availability of international reserves, but the main consideration is to maintain a stable exchange rate. The interbank and retail markets transact at freely determined rates, but these rates are generally based on, and close to, the TICEX rate.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketNo.
Arrangements for Payments and Receipts
Prescription of currency requirementsResidents of Tajikistan may make and receive payments and transfers in any convertible currency as well as in Tajik rubles. Residents and nonresidents may not use foreign exchange for domestic transactions, except for special cases as defined by the authorities. Commercial transactions with nonresidents must be conducted via correspondent accounts maintained either by authorized commercial banks or by the NBT.
Payment arrangements
Bilateral payment arrangements
OperativeYes.
InoperativeThere are inoperative agreements with the CIS countries, and negotiations for settlement of balances have been concluded.
Barter agreements and open accountsBarter trade is allowed only for aluminum and electricity.
Administration of controlThe NBT (1) acts as nonexclusive agent for the Republic of Tajikistan in the administration of foreign exchange controls; (2) issues licenses to commercial banks to conduct banking operations and foreign currency operations; (3) is exclusively responsible for the supervision and regulation of financial institutions; (4) manages official foreign exchange reserves; and (5) formulates basic foreign exchange policy. The MOF registers foreign investors for inward direct investment.
International security restrictionsNo.
Payment arrears
OfficialExternal arrears to the Kyrgyz Republic and Kazakhstan falling due in the first quarter of 1999 were settled on June 29, 1999. On September 30, 1999, arrears falling due for the second quarter were paid to the Kyrgyz Republic. External arrears to the United States falling due in November were settled on January 21, 2000.
PrivateYes.
Controls on trade in gold (coins and/or bullion)Trade in gold is regulated by the Committee on Precious Metals and Semiprecious Stones.
Controls on external tradeJoint ventures that extract gold are subject to controls.
Controls on exports and imports of banknotes
On exports
Domestic currencyExports of domestic currency are allowed freely without customs regulations.
Foreign currencyEffective March 30, 2000, foreign exchange may be exported freely up to $2,000. For any amount above this limit, documents proving the legality of the exports must be submitted.
On imports
Foreign currencyImports are permitted, provided customs rules are observed.
Resident Accounts
Foreign exchange accounts permittedAll restrictions on foreign exchange cash withdrawals were eliminated on June 4, 1999.
Held domesticallyYes.
Held abroadThese accounts are permitted under the Law on Foreign Currency Control. However, the opening of these accounts requires authorization from the NBT.
Accounts in domestic currency convertible into foreign currencyYes.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsYes.
Convertible into foreign currencyYes.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsOn June 29, 1999, import documentation requirements in connection with cash withdrawals from commercial banks were eliminated.
Letters of creditYes.
Import licenses and other nontariff measuresEffective July 1, 1999, import licensing was introduced on tobacco and tobacco products.
Negative listThe importation of firearms, narcotics, poisons, chemical weapons, and nuclear materials is prohibited.
Licenses with quotasEffective March 1, 1999, licenses with quotas were introduced on imports of ethyl alcohol and alcohol products.
Import taxes and/or tariffsAs Tajikistan is a member of a customs union, customs duties are the same as in the other member countries of the union. Alumina is exempt from duty. Customs duties are collected on alcohol and cigarette imports in fixed amounts, depending on the quantity of goods imported (liters and units).
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsYes.
Surrender requirementsForeign exchange proceeds may be either held by exporters in foreign currency accounts with domestic banks or sold in the interbank market.
Financing requirementsYes.
Documentation requirementsFor exports of cotton, a 100% advance payment is required.
Letters of creditYes.
GuaranteesYes.
Export licensesEffective July 1, 1999, licenses are required for the preparation, processing, and export of tobacco and tobacco products.
With quotasOn March 1, 1999, licenses with quotas were introduced on exports and purchases of ethyl alcohol and alcohol products.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfers
Foreign workers’ wages
Quantitative limitsYes.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsYes.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital and money market instruments
On capital market securities
Shares or other securities of a participating nature
Purchase locally by nonresidentsMOF and NBT approval is required for the purchase of 10% of shares, and the purchase of shares among shareholders is restricted.
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsNBT approval is required.
Sale or issue abroad by residentsOnly juridical persons may issue these instruments; registration with the MOF and approval of the NBT are required-
Bonds or other debt securitiesRegistration with the MOF is required.
Purchase locally by nonresidentsred.
Sale or issue locally by nonresidentsYes.
Sale or issue abroad by residentsYes.
On money market instruments
Purchase locally by nonresidentsYes.
Sale or issue locally by nonresidentsSales by nonresidents are permitted.
Purchase abroad by residentsNBT approval is required.
Sale or issue abroad by residentsNBT approval is required.
On collective investment securities
Purchase locally by nonresidentsYes.
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsNBT approval is required.
Sale or issue abroad by residentsIf the security is issued in foreign currency, NBT approval is required.
Controls on derivatives and other instruments
Purchase abroad by residentsNBT approval is required.
Sale or issue abroad by residentsNBT approval is required.
Controls on credit operations
Commercial credits
By residents to nonresidentsThere are no controls for loans of up to a 120-day maturity.
To residents from nonresidentsThere are no controls for loans of up to a 180-day maturity.
Financial creditsThere are no controls for loans of up to a 180-day maturity. For maturities over 180 days, NBT approval is required.
By residents to nonresidentsYes.
To residents from nonresidentsYes.
Guarantees, sureties, and financial backup facilities
By residents to nonresidentsThere are no controls for such facilities of up to a 180-day maturity. For those with maturities over 180 days, NBT approval is required.
To residents from nonresidentsYes.
Controls on direct investment
Outward direct investmentNBT approval is required.
Controls on liquidation of direct investmentNo.
Controls on real estate transactions
Purchase abroad by residentsNBT approval is required.
Controls on personal capital movementsNo.
Provisions specific to commercial banks and other credit institutions
Borrowing abroadOnly authorized foreign exchange banks may borrow from abroad.
Maintenance of accounts abroadn.r.
Lending to nonresidents (financial or commercial credits)Yes.
Lending locally in foreign exchangeYes.
Purchase of locally issued securities denominated in foreign exchangeThere are no such securities in Tajikistan.
Investment regulationsThe limit is 20% of capital.
Abroad by banksYes.
In banks by nonresidentsYes.
Open foreign exchange position limitsThe aggregate open long and short positions are limited to 30% and 10% of the bank’s capital, respectively.
On resident assets and liabilitiesYes.
On nonresident assets and liabilitiesYes.
Provisions specific to institutional investorsNo.
Other controls imposed by securities lawsNo.
Changes During 1999
Arrangements for payments and receiptsJune 29. External arrears to the Kyrgyz Republic and Kazakhstan were settled.



September 30. External arrears falling due in the second quarter were paid to the Kyrgyz Republic.
Resident accountsJune 4. All restrictions on foreign exchange cash withdrawals were eliminated.
Imports and import paymentsMarch 1. Licenses with quotas were introduced on imports of ethyl alcohol and alcohol products.



June 29. Import documentation requirements in connection with cash withdrawals from commercial banks were eliminated.



July 1. Import licensing was introduced on tobacco and tobacco products.
Exports and export proceedsMarch 1. Licenses with quotas were introduced on exports and purchases of ethyl alcohol and alcohol products.



July 1. Licenses were required for the preparation, processing, and export of tobacco and tobacco products.
Changes During 2000
Arrangements for payments and receiptsJanuary 21. External arrears falling due in November 1999 were paid to the United States.



March 30. Exports of foreign exchange up to a limit of $2,000 were allowed freely.

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