Chapter

DJIBOUTI

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 VIIIDate of acceptance: September 19, 1980.
Exchange Arrangement
CurrencyThe currency of Djibouti is the Djibouti franc.
Exchange rate structureUnitary.
Classification
Currency board arrangementThe Djibouti franc is pegged to the dollar, the intervention currency, at DF 177.721 per $1. The official buying and selling rates for currencies other than the dollar are set by local banks on the basis of the cross rates for the dollar in international markets. There is coverage of the full issue of Djibouti francs in foreign exchange.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketNo.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payment arrangementsNo.
Administration of controlNo.
International security restrictions
In accordance with UN sanctionsYes.
Payment arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
Controls on exports and imports of banknotesNo.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency convertible into foreign currencyYes.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsYes.
Convertible into foreign currencyYes.
Blocked accountsYes.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for imports
Advance import depositsAdvance import deposits are permitted up to a certain percentage of the value of imports.
Documentation requirements for release of foreign exchange for importsYes.
Preshipment inspectionYes.
Letters of creditYes.
Import licenses and other nontariff measures
Negative listYes.
Import taxes and/or tariffsFormally, customs duties are not charged on imports, but, in practice, fiscal duties are levied by means of the general consumption tax on imports at three rates (8%, 20%, and 33%). Certain commodities, including alcoholic beverages, noncarbonated mineral water, petroleum products, khat, and tobacco, are subject to a surtax of various rates.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsYes.
Documentation requirements
Letters of creditYes.
GuaranteesYes.
DomiciliationYes.
Preshipment inspectionYes.
Export licensesNo.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital and money market instrumentsNo.
Controls on derivatives and other instrumentsNo.
Controls on credit operationsThere are controls on all credit transactions by residents to nonresidents, including transactions as regards guarantees, sureties, and financial backup facilities within the limits established by the banking regulations to comply with the prudential standard on customer risk.
Commercial credits
By residents to nonresidentsYes.
Financial credits
By residents to nonresidentsYes.
Guarantees, sureties, and financial backup facilities
By residents to nonresidentsYes.
Controls on direct investment
Outward direct investmentYes.
Inward direct investmentYes.
Controls on liquidation of direct investmentNo.
Controls on real estate transactionsNo.
Controls on personal capital movementsNo.
Provisions specific to commercial banks and other credit institutions
Lending to nonresidents (financial or commercial credits)Yes.
Lending locally in foreign exchangeYes.
Purchase of locally issued securities denominated in foreign exchangeYes.
Differential treatment of deposit accounts in foreign exchange
Liquid asset requirementsYes.
Differential treatment of deposit accounts held by nonresidents
Liquid asset requirementsYes.
Provisions specific to institutional investors
Currency-matching regulations on assets/liabilities compositionThere is a matching requirement with respect to both the amount of the transaction and the intervention currency, and also with respect to maturity and interest rate.
Other controls imposed by securities lawsNo.
Changes During 1999
No significant changes occurred in the exchange and trade system.
Changes During 2000
Imports and import paymentsJanuary 1. The consumption tax on imports was reduced to three rates (8%, 20%, and 33%) from seven rates.

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