Chapter

KIRIBATI

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: August 22, 1986.
Exchange Arrangement
CurrencyThe currency of Kiribati is the Australian dollar.
Other legal tenderA small number of Kiribati coins is also in circulation.
Exchange rate structureUnitary.
Classification
Exchange arrangement with no separate legal tenderThere is no central monetary institution, and the authorities do not buy or sell foreign exchange. The Bank of Kiribati (BOK), the only commercial bank, quotes daily rates for 15 currencies on the basis of their respective values against the Australian dollar.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketThe BOK provides forward contracts of up to three months of maturity.
Arrangements for Payments and Receipts
Prescription of currency requirementsOutward and inward payments may be settled in Australian currency or in any other currency. Purchases and sales of foreign currencies in exchange for Australian dollars must be undertaken with the BOK, the only authorized foreign exchange dealer.
Payment arrangementsNo.
Administration of controlNo.
International security restrictionsNo.
Payment arrearsNo.
Controls on trade in gold (coins and/or bullion)n.a.
Controls on exports and imports of banknotesNo.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency convertible into foreign currencyn.a.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsn.a.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsn.a.
Import licenses and other nontariff measures
Negative listImports of certain goods are prohibited for health, safety, or environmental reasons.
Import taxes and/or tariffsTariffs ranging from zero to 80% apply to most private imports. Specific duties apply to imports of rice, flour, petroleum products, alcoholic beverages, and tobacco products.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirementsn.a.
Export licensesCopra may be exported only through the Kiribati Copra Cooperative Society.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersInformation is not available on the payment of amortization of loans or depreciation of direct investments.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsn.a.
Restrictions on use of fundsn.a.
Capital Transactions
Controls on capital and money market instrumentsn.a.
Controls on derivatives and other instrumentsn.a.
Controls on credit operationsn.a.
Controls on direct investment
Inward direct investmentThe authorities encourage investments in the export-promoting or import-substituting sectors. All applications for foreign investment up to $A 250,000 must be made to the Foreign Investment Commission for approval. Applications with a larger capital contribution are approved by the Cabinet.
Controls on liquidation of direct investmentn.a.
Controls on real estate transactionsn.a.
Controls on personal capital movementsn.a.
Provisions specific to commercial banks and other credit institutionsn.a.
Provisions specific to institutional investorsn.a.
Other controls imposed by securities lawsn.a.
Changes During 1999
No significant changes occurred in the exchange and trade system.

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