Chapter

Summary Features of Exchange Arrangements and Regulatory Frameworks for Current and Capital Transactions in Member Countries1

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2003
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Total number of member countries with this featureAfghanistan, I.S. ofAlbaniaAlgeriaAngolaAntigua and BarbudaArgentinaArmeniaAustraliaAustriaAzerbaijanThe BahamasBahrain, Kingdom ofBangladeshBarbadosBelarusBelgiumBelizeBeninBhutanBoliviaBosnia and Herzegovina
Status under IMF Articles of Agreement
Article VIII158"
Article XIV26
Exchange rate arrangements
Exchange arrangement with no separate legal tender41
Currency board arrangement7
Conventional pegged arrangement42+++++
Pegged exchange rate within horizontal bands5
Crawling peg5
Crawling band5+
Managed floating with no preannounced path for the exchange rate46
Independently floating36
Exchange rate structure
Dual exchange rates11
Multiple exchange rates3
Arrangements for payments and receipts
Bilateral payments arrangements64
Payments arrears65
Controls on payments for invisible transactions and current transfers98
Proceeds from exports and/or invisible transactions
Repatriation requirements101
Surrender requirements79
Capital transactions
Controls on:
Capital market securities128
Money market instruments107
Collective investment securities99
Derivatives and other instruments83
Commercial credits104
Financial credits112
Guarantees, sureties, and financial backup facilities92
Direct investment149
Liquidation of direct investment57
Real estate transactions137
Personal capital transactions97
Provisions specific to:
Commercial banks and other credit institutions160
Institutional investors91
For key and footnotes, see page 18.
For key and footnotes, see page 18.
BotswanaBrazilBrunei DarussalamBulgariaBurkina FasoBurundiCambodiaCameroonCanadaCape VerdeCentral African RepublicChadChileChina, People’s Rep. ofColombiaComorosCongo, Dem. Rep. ofCongo, Republic ofCosta RicaCôte d’IvoireCroatiaCyprusCzech RepublicDenmarkDjiboutiDominicaDominican RepublicEcuadorEgyptEl SalvadorEquatorial GuineaEritreaEstoniaEthiopiaFijiFinland
+
FranceGabonGambia, TheGeorgiaGermanyGhanaGreeceGrenadaGuatemalaGuineaGuinea-BissauGuyanaHaitiHondurasHungaryIcelandIndiaIndonesiaIran, I.R. ofIraqIrelandIsraelItalyJamaicaJapan
Status under IMF Articles of Agreement
Article VIII
Article XIV
Exchange rate arrangements
Exchange arrangement with no
separate legal tender
Currency board arrangement
Conventional pegged arrangement
Pegged exchange rate within
horizontal bands
Crawling peg
Crawling band
Managed floating with no preannounced path for the exchange rate
Independently floating
Exchange rate structure
Dual exchange rates
Multiple exchange rates
Arrangements for payments and receipts
Bilateral payments arrangements
Payments arrears
Controls on payments for invisible transactions and current transfers
Proceeds from exports and/or invisible transactions
Repatriation requirements
Surrender requirements
Capital transactions
Controls on:
Capital market securities
Money market instruments
Collective investment securities
Derivatives and other instruments
Commercial credits
Financial credits
Guarantees, sureties, and financial backup facilities
Direct investment
Liquidation of direct investment
Real estate transactions
Personal capital movements
Provisions specific to:
Commercial banks and other
credit institutions
Institutional investors
For key and footnotes, see page 18.
For key and footnotes, see page 18.
JordanKazakhstanKenyaKiribatiKorea, Republic ofKuwaitKyrgyz RepublicLao People’s Dem. Rep.LatviaLebanonLesothoLiberiaLibyan Arab JamahiriyaLithuaniaLuxembourgMacedonia, fmr. Yugoslav Rep.MadagascarMalawiMalaysiaMaldivesMaliMaltaMarshall Islands, Rep. of theMauritaniaMauritiusMexicoMicronesia, Fed. States ofMoldovaMongoliaMoroccoMozambiqueMyanmarNamibiaNepalNetherlands
++++
New ZealandNicaraguaNigerNigeriaNorwayOmanPakistanPalauPanamaPapua New GuineaParaguayPeruPhilippinesPolandPortugalQatarRomaniaRussian FederationRwandaSt. Kitts and NevisSt. LuciaSt. Vincent and the GrenadinesSamoaSan MarinoSão Tomé and Príncipe
Status under IMF Articles of Agreement
Article VIII
Article XIV
Exchange rate arrangements
Exchange arrangement with no separate legal tender
Currency board arrangement
Conventional pegged arrangement
Pegged exchange rate within horizontal bands
Crawling peg
Crawling band*
Managed floating with no preannounced path for the exchange rate
Independently floating
Exchange rate structure
Dual exchange rates
Multiple exchange rates
Arrangements for payments and receipts
Bilateral payments arrangements
Payments arrears
Controls on payments for invisible transactions and current transfers
Proceeds from exports and/or invisible transactions
Repatriation requirements
Surrender requirements
Capital transactions
Controls on:
Capital market securities
Money market instruments
Collective investment securities
Derivatives and other instruments
Commercial credits
Financial credits
Guarantees, sureties, and financial backup facilities
Direct investment
Liquidation of direct investment
Real estate transactions
Personal capital movements
Provisions specific to:
Commercial banks and other credit institutions
Institutional investors
For key and footnotes, see page 18.
For key and footnotes, see page 18.
Saudi ArabiaSenegalSerbia and MontenegroSeychellesSierra LeoneSingaporeSlovak RepublicSloveniaSolomon IslandsSomaliaSouth AfricaSpainSri LankaSudanSurinameSwazilandSwedenSwitzerlandSyrian Arab RepublicTajikistanTanzaniaThailandTimor-LesteTogoTongaTrinidad and TobagoTunisiaTurkeyTurkmenistanUgandaUkraineUnited Arab EmiratesUnited KingdomUnited StatesUruguay
+
UzbekistanVanuatuVenezuela, Rep. Bolivariana deVietnamYemen, Republic ofZambiaZimbabweMemorandum: NonmembersArubaHong Kong SARNetherlands Antilles
Status under IMF Articles of Agreement
Article VIII
Article XIV
Exchange rate arrangements
Exchange arrangement with no separate legal tender
Currency board arrangement
Conventional pegged arrangement
Pegged exchange rate within horizontal bands
Crawling peg
Crawling band
Managed floating with no preannounced path for the exchange rate
Independently floating
Exchange rate structure
Dual exchange rates
Multiple exchange rates
Arrangements for payments and receipts
Bilateral payments arrangements
Payments arrears
Controls on payments for invisible transactions and current transfers
Proceeds from exports and/or invisible transactions
Repatriation requirements
Surrender requirements
Capital transactions
Controls on:
Capital market securities
Money market instruments
Collective investment securities
Derivatives and other instruments
Commercial credits
Financial credits
Guarantees, sureties, and financial backup facilities
Direct investment
Liquidation of direct investment
Real estate transactions
Personal capital movements
Provisions specific to:
Commercial banks and other credit institutions
Institutional investors
Key and Footnotes

Indicates that the specified practice is a feature of the exchange system.

Indicates that data were not available at time of publication.

Indicates that the specific practice is not regulated.

Indicates that member uses the currency of another member as legal tender.

Indicates that member participates in the euro area.

Indicates that flexibility is limited vis-à-vis the U.S. dollar.

Indicates that flexibility is limited vis-à-vis the euro.

Indicates that flexibility is limited vis-à-vis another single currency.

Indicates that flexibility is limited vis-à-vis the SDR.

Indicates that flexibility is limited vis-à-vis a basket of currencies.

Indicates that the country participates in the ERM II of the EMS.

Indicates other arrangements.

The entries for Aruba, Hong Kong SAR, and the Netherlands Antilles are located at the end of the table.

Usually December 31, 2003.

Key and Footnotes

Indicates that the specified practice is a feature of the exchange system.

Indicates that data were not available at time of publication.

Indicates that the specific practice is not regulated.

Indicates that member uses the currency of another member as legal tender.

Indicates that member participates in the euro area.

Indicates that flexibility is limited vis-à-vis the U.S. dollar.

Indicates that flexibility is limited vis-à-vis the euro.

Indicates that flexibility is limited vis-à-vis another single currency.

Indicates that flexibility is limited vis-à-vis the SDR.

Indicates that flexibility is limited vis-à-vis a basket of currencies.

Indicates that the country participates in the ERM II of the EMS.

Indicates other arrangements.

The entries for Aruba, Hong Kong SAR, and the Netherlands Antilles are located at the end of the table.

Usually December 31, 2003.

Islamic State of Afghanistan

(Position as of March 31, 2003)

Status Under IMF Articles of Agreement
Article XIVYes.
Exchange Arrangement
CurrencyThe currency of the Islamic State of Afghanistan is the Afghani. On September 4, 2002, new currency notes were issued replacing old currency at a conversion rate of 1 to 1,000.
Exchange rate structure
UnitaryThe Da Afghanistan Bank (DAB), the central bank, maintains a daily official rate defined in terms of the U.S. dollar and based on the average of the opening quotations of a number of important and reputable money traders operating in a free market in the form of a money bazaar. In principle, the DAB’s buying/selling rates for foreign cash is within a margin of ±1%; in practice, however the DAB’s transactions have been limited to buying, and thus have little impact on the exchange rate movements in the market. A second exchange rate, the official rate, is applied to transactions of the central government (mainly debt-service payments) and certain foreign currency incomes earned in the Islamic State of Afghanistan.
Classification
Managed floating with no preannounced path for the exchange rateMost convertible currency transactions are effected at the free market exchange rate. The DAB posts rates for dollars, euros, Indian rupees, Pakistan rupees, pounds sterling, and Swiss francs. These rates are calculated using the IMF’s daily SDR rates for these currencies. On the basis of additional information, the exchange rate regime of Afghanistan was reclassified, effective January 1, 2002, to the category managed floating with no preannounced path for the exchange rate from the category independently floating.
Exchange taxn.a.
Exchange subsidyn.a.
Forward exchange marketThere are no arrangements for forward cover against exchange rate risk in operations in the official market or the commercial banking sector.
Arrangements for Payments and Receipts
Prescription of currency requirementsSettlements with countries with which the Islamic State of Afghanistan maintains bilateral payments agreements are made in bilateral accounting dollars, in accordance with the procedures set forth in these agreements. Exchange rates for trade under bilateral payments agreements are specified in each agreement. The proceeds from exports of karakul to all countries must be obtained in convertible currencies. There are no other prescriptions of currency requirements.
Controls on the use of domestic currencyEffective March 21, 2003, the Afghani is designated as the currency to be used for all transactions and settlements of accounts unless the use of another currency is agreed by the parties concerned.
Payments arrangements
Bilateral payments arrangementsThe Islamic State of Afghanistan maintains bilateral payments agreements with Bulgaria, China, and Russia. Some of these have been inoperative for several years.
Administration of controlForeign exchange transactions are controlled by the government through the DAB. No restrictions apply to transactions in the free exchange market.
International security restrictionsn.a.
Payments arrearsn.a.
Controls on trade in gold (coins and/or bullion)
Controls on external tradeImports and reexports of gold are permitted, subject to regulations. Exports of gold bullion, silver, and jewelry require permission from the DAB and the Ministry of Finance. Commercial exports of gold and silver jewelry and other articles containing small quantities of gold or silver do not require a license. Customs duties are payable on imports and exports of silver in any form, unless the transaction is made by, or on behalf of, the monetary authorities.
Controls on exports and imports of banknotes
On exports
Domestic currencyTravelers may take out up to Af 2,000 in domestic banknotes and Af 50 in coins.
On imports
Domestic currencyTravelers may bring in up to Af 2,000 in domestic banknotes and Af 50 in coins.
Foreign currencyTravelers entering the Islamic State of Afghanistan are required to spend a minimum of the equivalent of $26 a day in foreign exchange. They may bring in any amount of foreign currency but must declare it when entering the country if they intend to take out any unspent amount on departure, subject to the minimum conversion requirement.
Resident Accounts
Foreign exchange accounts permittedEffective March 21, 2002, DAB approval is required for residents to open and hold foreign exchange accounts domestically or abroad.
Accounts in domestic currency held abroadNo.
Accounts in domestic currency convertible into foreign currencyNo.
Nonresident Accounts
Foreign exchange accounts permittedEffective March 21, 2002, DAB approval is required for nonresidents to open and hold foreign exchange accounts.
Domestic currency accountsYes.
Convertible into foreign currencyNo.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetAn annual import program drawn up by the Ministry of Commerce covers both public and private sector imports. Adjustments in the public sector import plan are made as circumstances change. There is an indicative import plan for the private sector, drawn up on the basis of proposals submitted by the Chamber of Commerce.
Financing requirements for importsn.a.
Documentation requirements for release of foreign exchange for imports
Letters of creditPayments through the banking system for imports to countries with which the Islamic State of Afghanistan has payments agreements may usually be made only under LCs. Payments to other countries may be made under LCs, against bills for collection, or against an undertaking by the importer to import goods of at least an equivalent value to the payment made through the banking system. Except for public sector imports under the government budget, all importers are required to lodge minimum import deposits with banks when they open LCs. The deposit ratios, based on the c.i.f. value of imports, are 20% for essential products and range from 30% to 60% for other products.
Import licenses and other nontariff measuresAll importers must obtain a license from the Ministry of Commerce to engage in import trade for statistical purposes. A license is issued on the basis of appropriate documents that have been approved by the Chamber of Commerce. For imports of nonessential goods, a 1% fee based on the import value is levied and is payable in dollars. The Chamber of Commerce charges a 2% fee to members and a 2.5% fee to nonmembers. The fee is based on the value of imports.
Positive listMost bilateral agreements specify quantities (and sometimes prices) for the products to be traded.
Negative listThe importation of certain drugs, liquor, arms, and ammunition is prohibited on grounds of public policy or for security reasons; in some instances, however, special permission to import these goods may be granted. The importation of a few textiles and selected nonessential consumer goods is also prohibited.
Licenses with quotasThere are no quantitative restrictions on most imports, but tariff rates on most consumer items range from 30% to 50%.
Import taxes and/or tariffsNo.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsExport proceeds from bilateral accounts may be retained in bilateral clearing dollar accounts with the DAB. These retained proceeds may either be used directly by the original exporter or sold to other importers. In either case, the retained proceeds are converted at the clearing rate applicable to that particular bilateral arrangement. In the case of exports to countries trading in convertible currencies, export proceeds may be retained abroad for three, six, or twelve months, depending on the country of destination. During the relevant period, the exporter may use these funds to import any goods not included on the list of prohibited goods. Alternatively, at the end of the relevant holding period limit, foreign exchange holdings abroad must be repatriated and held in a foreign currency account with a bank in the Islamic State of Afghanistan or sold at the commercial exchange rate.
Surrender requirementsProceeds from exports of raisins, fresh fruits, animal casings, skins, licorice roots, medicinal herbs, and wool must be surrendered immediately at the commercial exchange rate.
Financing requirementsn.a.
Documentation requirementsn.a.
Export licensesAll exporters must obtain a license from the Ministry of Commerce to engage in export trade for statistical purposes. A license is issued on the basis of appropriate documents that have been approved by the Chamber of Commerce. The Chamber of Commerce levies a 5% fee based on the export value. The exportation of opium and museum pieces is prohibited. Otherwise, control is exercised only over exports to bilateral agreement countries.
Without quotasYes.
Export taxesn.a.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersForeign exchange for most private purposes may be acquired in the money bazaar.
Payments for travelThe DAB levies a charge of Af 0.75 per $1. A further charge of 1% on the total value of other convertible currencies is levied for permits for their export by authorized travelers.
Prior approvalYes.
Quantitative limitsThe limit for tourist travel is $2,000, except for private travel to India, for which the limit is the equivalent of $700. The limit for business travel is $15,000.
Personal paymentsFor medical treatment, the central bank levies a commission of Af 0.75 per $1. No information is available for other types of personal payments other than medical costs.
Prior approvalYes.
Quantitative limitsNormally, the DAB grants $2,500 for medical treatment.
Foreign workers’ wagesForeign employees working in the Afghan public and private sectors must convert 60% of their foreign currency salaries into Afghanis at the official rate.
Quantitative limitsYes.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsn.a.
Restrictions on use of fundsn.a.
Capital Transactions
Controls on capital transactionsYes.
Controls on capital and money market instrumentsEffective March 21, 2002, in accordance with the Law on Domestic and Foreign Private Investment, the liquidation of investments in enterprises requires approval from the High Commission and the prior settlement of all accounts.
Controls on derivatives and other instrumentsn.a.
Controls on credit operationsn.a.
Controls on direct investment
Inward direct investmentInvestments require prior approval and are administered by the Investment Committee. The law stipulates that foreign investment in the Islamic State of Afghanistan can take place only through joint ventures, with foreign participation, and that an investment approved by the Investment Committee requires no further license to operate in the Islamic State of Afghanistan. The Foreign and Domestic Private Investment Law includes the following provisions: (1) income tax exemption for four years (six years outside Kabul province), beginning with the date of the first sale of products resulting from the new investment; (2) exemption from import duties on essential imports (mainly for capital goods); (3) exemption from taxes on dividends for four years after the first distribution of dividends, but not more than seven years after the approval of the investment; (4) exemption from personal income and corporate taxes on interest on foreign loans that constitute part of an approved investment; (5) exemption from export duties, provided that the products are not among the prohibited exports; and (6) mandatory procurement by government agencies and departments from enterprises established under the law, as long as the prices are not more than 15% higher than those of foreign suppliers.
Controls on liquidation of direct investmentSales of investments in enterprises, as defined by the Domestic and Foreign Investment Law, must be approved by the Afghani High Commission and must be preceded by the settlement of all accounts.
Capital may be repatriated after five years at an annual rate not exceeding 20% of the total registered capital.
Controls on real estate transactionsn.a.
Controls on personal capital transactionsn.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 2002
Exchange arrangementJanuary 1. The exchange arrangement of Afghanistan was reclassified to the category managed floating with no preannounced path for the exchange rate from the category independently floating.
September 4. New currency notes were issued replacing old currency at a conversion rate of 1 to 1,000.
Resident accountsMarch 21. DAB approval was required for residents to open and hold foreign exchange accounts.
Nonresident accountsMarch 21. DAB approval was required for nonresidents to open and hold foreign exchange accounts.
Capital transactions
Controls on capital and money market instrumentsMarch 21. In accordance with the Law on Domestic and Foreign Private Investment, the liquidation of investments in enterprises required approval from the High Commission and prior settlement of all accounts.
Changes During 2003
Arrangements for payments and receiptsMarch 21. The Afghani was designated as the currency to be used for all transactions and settlements of accounts unless the use of another currency is agreed by the parties concerned.

Albania

(Position as of December 31, 2002)

Status Under IMF Articles of Agreement
Article XIVYes.
Exchange Arrangement
CurrencyThe currency of Albania is the Albanian lek.
Exchange rate structureUnitary.
Classification
Independently floatingThe exchange rate of the lek is determined on the basis of supply and demand for foreign exchange, and the Bank of Albania (BOA) occasionally intervenes in the exchange market only to smooth excessive fluctuations of the exchange rate. The BOA calculates and announces the daily average exchange rates for the dollar and 10 other major currencies and the prices of gold and silver. No margins are set between buying and selling rates for the official exchange rate, but commercial banks charge commissions ranging from 0.2% to 2%, depending on the amount, for cashing traveler’s checks. Government transactions are conducted at market rates.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketNo.
Arrangements for Payments and Receipts
Prescription of currency requirementsPayment for all merchandise trade is made in convertible currencies. All transactions under bilateral payment agreements were suspended in 1992, and the settlement of clearing accounts is awaiting the outcome of negotiations. All contracts denominated and payable in foreign currencies are valid.
Payments arrangements
Bilateral payments arrangementsYes.
Clearing agreementsAlbania maintains bilateral clearing agreements in nonconvertible currencies with Algeria, Bulgaria, Cuba, the Czech Republic, Egypt, Hungary, the Democratic People’s Republic of Korea, Poland, Romania, the Russian Federation, and Vietnam. Albania also maintains bilateral clearing agreements in convertible currencies with Bulgaria, China, Cuba, the Czech Republic, Greece, the Democratic People’s Republic of Korea, Romania, Turkey, Vietnam, and Serbia and Montenegro.
Administration of controlThe BOA is vested with the powers to administer exchange controls. The BOA is the only authority that has the right to (1) license, authorize, regulate, supervise, and revoke the licenses of foreign exchange market operations, as well as second-tier banks; (2) define the limits of their activities; and (3) regulate and supervise foreign exchange operations and international payments in order to prevent any participant from dominating the market and undermining the value of the lek through speculation.

In accordance with anti-money laundering legislation, banks are required to maintain records of all cash transactions in excess of lek 2 million (approximately $14,000) and on all other transactions in excess of lek 70 million (approximately $500,000), and to report these to the authority responsible for the prevention of money laundering.
International security restrictionsNo.
Payments arrears
OfficialAlbania has arrears on debts owed to China, Greece, the Russian Federation, Turkey, and with a number of official and commercial creditors. Official payments arrears to the Russian Federation are subject to a Paris Club Agreement, for which a bilateral rescheduling agreement was reached; this became effective in March 2002. A bilateral rescheduling agreement with China also was reached and came into force in September 2002. Albania has arrears on debts owed to private parties.
PrivateYes.
Controls on trade in gold (coins and/or bullion)n.r.
Controls on exports and imports of banknotes
On exports
Domestic currencyNatural and juridical persons are allowed to take out up to lek 100,000 a person in banknotes and coins. The BOA may authorize larger amounts.
Foreign currencyForeign natural persons may take abroad in cash or traveler’s checks foreign exchange in an amount equal to the amount declared when entering the country. Albanian natural or juridical persons are not allowed to export amounts larger than $20,000 or its equivalent.
On imports
Domestic currencyNatural and juridical persons are allowed to import up to lek 100,000 in domestic banknotes and coins. The BOA may authorize larger amounts.
Foreign currencyNatural and juridical persons are allowed to import foreign currency and traveler’s checks up to $10,000 or its equivalent in any other currency.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Held abroadResidents—natural or juridical persons—may open and maintain foreign currency–denominated accounts with banks and financial institutions abroad only with the prior approval of the BOA, which may control and monitor transactions affecting such accounts.
Accounts in domestic currency held abroadn.a.
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 importsFor imports equal to or larger than $20,000 or its equivalent, the following documents must be submitted: (1) an application for carrying out the transaction as well as a declaration specifying in detail the nature of the transaction; (2) a contract and an invoice (or a pro forma invoice) issued by the natural or juridical person supplying the goods; and (3) a declaration that the underlying document has not been used to support previous transactions, which is to be issued by the natural or juridical person wishing to carry out the transaction with the bank.
Letters of creditLCs, bank guarantees, or cash against documents should be used for the payment of imports equal to or in excess of $200,000 or its equivalent.
Import licenses used as exchange licensesYes.
Import licenses and other nontariff measures
Positive listYes.
Open general licensesYes.
Licenses with quotasAutomatic licensing restrictions are applied on fuel products to support the implementation of domestic technical standards.
Other nontariff measuresThe import of the following products is prohibited: (1) dangerous waste, such as toxic corrosives, residual waste from explosives, and radioactive materials; (2) military poisons, chemical weapons, and other strong poisons; (3) narcotics and psychotropic substances; and (4) animal products from countries infected with livestock diseases.
Import taxes and/or tariffsExcise taxes on domestic and imported goods are unified. There are four customs tariff rates, which are applied to the c.i.f. value: zero, 2%, 10%, and 15%.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsAll private and public companies or individuals operating in the export sector are required to repatriate their foreign exchange receipts.
Financing requirementsNo.
Documentation requirementsNo.
Export licensesExport bans apply on copper and articles made thereof; works of art; arms and ammunitions, as well as parts and accessories therefor; and explosives and pyrotechnic products.
Without quotasYes.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersSupporting documents are required for transactions exceeding $20,000 or its equivalent.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsYes.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital transactionsYes.
Controls on capital and money market instrumentsPurchases of these instruments abroad by residents require prior approval of the BOA. Trade in these instruments locally or abroad is subject to the control of the Albanian Securities Commission.
On capital market securities
Shares or other securities of a participating nature
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsYes.
Bonds or other debt securities
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsYes.
On money market instruments
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsYes.
On collective investment securities
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsYes.
Controls on derivatives and other instrumentsTransactions in these instruments are subject to the control of the Albanian Securities Commission, but these are not yet regulated.
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsn.r.
Controls on credit operations
Commercial credits
By residents to nonresidentsCommercial banks may not, without the prior approval of the BOA, extend credit to nonresidents, except to banks and other financial institutions.
Financial credits
By residents to nonresidentsCommercial banks may not, without the prior approval of the BOA, extend credit to nonresidents, except to banks and other financial institutions.
Guarantees, sureties, and financial backup facilities
By residents to nonresidentsYes.
Controls on direct investment
Outward direct investmentOutward direct investments are subject to the prior approval of the BOA.
Controls on liquidation of direct investmentNo.
Controls on real estate transactions
Purchase abroad by residentsPurchases are subject to the prior approval of the BOA.
Purchase locally by nonresidentsThe controls relate only to the purchase of land.
Controls on personal capital transactions
LoansPrior BOA approval is required.
By residents to nonresidentsYes.
Provisions specific to commercial banks and other credit institutions
Lending to nonresidents (financial or commercial credits)Commercial banks may not, without the prior approval of the BOA, extend credit to nonresidents, except to banks and other financial institutions.
Differential treatment of deposit accounts held by nonresidents
Credit controlsYes.
Investment regulations
Abroad by banksYes.
In banks by nonresidentsYes.
Open foreign exchange position limitsThe limit is 20% of the bank’s capital for a single currency and 30% for all currencies.
On resident assets and liabilitiesYes.
On nonresident assets and liabilitiesYes.
Provisions specific to institutional investorsn.r.
Other controls imposed by securities lawsn.r.
Changes During 2002
Arrangements for payments and receiptsMarch 31. Bilateral rescheduling agreements with the Russian Federation came into force.
September 30. Bilateral rescheduling agreements with China came into force.

Algeria

(Position as of January 31, 2003)

Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: September 15, 1997.
Exchange Arrangement
CurrencyThe currency of Algeria is the Algerian dinar.
Exchange rate structureUnitary.
Classification
Managed floating with no preannounced path for the exchange rateThe external value of the dinar is determined in the interbank foreign exchange market. No margin limits are imposed on the buying and selling exchange rates in the interbank foreign exchange market. However, a margin of DA 0.015 has been established between the buying and selling rates of the Bank of Algeria (BOA) for the dinar against the dollar.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketAuthorized banks may provide forward cover to residents, but this has not taken place.
Arrangements for Payments and Receipts
Prescription of currency requirementsSettlements with countries with which no payment agreements are in force are made in convertible currencies. Payments under foreign supply contracts may be made in either the currency in use at the headquarters of the supplier or that of the country of origin of the merchandise, except that transactions with Morocco may be effected in dollars through special clearing accounts maintained at the central banks of each country.
Payments arrangements
Clearing agreementsSpecified commercial settlements with Morocco and Tunisia are made through a Moroccan dirham account at the Bank of Morocco and a Tunisian dinar account at the Bank of Tunisia.
Administration of controlThe BOA has general jurisdiction over exchange controls. Authority for a number of exchange control procedures has been delegated to commercial banks and the Postal Administration.
International security restrictionsNo.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)
Controls on domestic ownership and/or tradeResidents may purchase, hold, and sell gold coins in Algeria for numismatic purposes. Unworked gold for industrial and professional use is distributed by the Agence nationale pour la distribution et la transformation de l’or et des autres métaux précieux (AGENOR); this agency is also authorized to purchase gold in Algeria and to hold, process, and distribute any other precious metals.
Controls on external tradeAGENOR is authorized to import and export any precious metals, including gold. Gold used by dentists and goldsmiths is imported by AGENOR. Gold and other precious metals are included on the list of items importable by concessionaires.
Controls on exports and imports of banknotes
On exports
Domestic currencyResident travelers may take out up to DA 200 a person.
Foreign currencyForeign nonresident travelers may reexport any foreign currency they declared upon entry. Resident travelers may export foreign currency withdrawn from their foreign currency accounts up to the equivalent of €7,622.45 a trip for an unlimited number of trips a year.
On imports
Domestic currencyResident travelers may reimport up to DA 200 a person. Nonresidents are not permitted to bring in Algerian dinar banknotes.
Foreign currencyThere are no restrictions on the importation of foreign banknotes, but residents and nonresidents must declare them when they enter Algeria.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyThese accounts may be freely credited with book transfers of convertible currencies from abroad using either postal or banking facilities, imported convertible foreign currencies that were declared at the time of the account holder’s entry into the country, and domestic bank-to-bank book transfers between accounts held by individuals. These accounts may be debited freely for book transfers abroad but only through the banking system. They may also be debited for purchases of dinars, for book transfers in dinars, and for purchases of convertible foreign currencies to be physically exported by the account holder. The interest rate payable on deposits in these accounts is fixed quarterly by the BOA.

Economic entities are also allowed to open foreign currency accounts for receiving and making foreign currency transfers, including the retained portion of their export proceeds. They may transfer funds in these accounts to other foreign currency accounts or use them to make payments in Algeria or to make foreign currency payments for goods and services pertaining to their business.
Accounts in domestic currency held abroadNo.
Accounts in domestic currency convertible into foreign currencyThese accounts are permitted in limited cases, such as for embassies.
Nonresident Accounts
Foreign exchange accounts permittedThese accounts may be credited with foreign currency banknotes and other means of payment denominated in foreign currency, as well as other dinar-denominated funds that meet all requirements for transfers abroad. They may be debited without restrictions to make transfers abroad, to export through withdrawals of foreign banknotes, and to make dinar payments in Algeria. These accounts pay interest and may not show a net debit position.
Domestic currency accountsFinal departure accounts may be opened, without prior authorization, in the name of any natural person residing in Algeria who is not of Algerian nationality, and who intends to leave Algeria to return to his or her country of origin. These accounts may be credited with an amount equivalent to the holdings as of October 20, 1963, of the person concerned; with the proceeds from sales of real estate by the account holder, provided that the funds are paid directly by a ministerial officer; with the proceeds of the sale of securities through a bank; and with any other payments up to DA 2,000. These accounts may be debited without prior approval for certain payments in Algeria on behalf of the account holder.
Convertible into foreign currencyYes.
Approval requiredOutward transfers require individual approval from the BOA.
Blocked accountsIndividual suspense accounts may be opened without authorization and may be credited with payments from any country.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsPayments for imports of gold, other precious metals, and precious stones must be made from foreign currency accounts. External borrowing by importers for import financing purposes must be arranged through the authorized intermediary banks.
Advance payment requirementsExcept when otherwise indicated by the BOA, down payments for imports may not exceed 15% of the total value of imports. When a public agency, public enterprise, or ministry incurs expenditures for imports deemed to be urgent or exceptional, the bank may effect payment before exchange and trade control formalities have been completed.
Advance import depositsAlthough not mandatory, domiciled banks may require from the importer, as part of their normal commercial operations, a deposit in dinars up to the full value of the imports.
Documentation requirements for release of foreign exchange for importsImports must be insured by Algerian insurers.
Domiciliation requirementsAll imports are subject to obligatory domiciliation at an authorized intermediary bank, which an importer must establish by submitting a commercial contract or pro forma invoice. Import payments may be made freely but only through the domiciled bank, which effects payments in foreign exchange and debits the importer’s account with corresponding amounts in dinars valued at the official exchange rate.
Preshipment inspectionYes.
Letters of creditYes.
Import licenses and other nontariff measures
Negative listThere are no legal restrictions against Israel, but there are no imports from Israel in practice. A small number of imports are prohibited for religious or security reasons.
Other nontariff measuresJuridical and natural persons registered under the Commercial Register (including concessionaires and wholesalers) may import goods without prior authorization. However, effective January 1, 2003, only joint stock companies with a minimum capital of DA 10 million owned by resident nationals of Algeria are authorized to import raw materials and manufactured goods for resale. (A transition period of six months is granted to enable economic agents to comply with the new arrangements.) These arrangements do not apply to concessionaries and wholesalers that have received Money and Credit Council approval.
Import taxes and/or tariffsEffective January 1, 2002, imports are subject to tariffs of zero, 5%, 15%, and 30%. On this same date, the temporary additional duty on certain categories of goods that was introduced in July 2001 was reduced to 36% from 48%. It is to be completely phased out by January 2006.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsProceeds must be repatriated within 120 days. Petroleum companies are subject to the same rule, but proceeds may be deposited in a guaranteed account with a foreign correspondent bank of the BOA.
Surrender requirementsAll export proceeds from crude and refined hydrocarbons, by-products from gas, and mineral products must be surrendered to the BOA. Exporters of other products must surrender 50% of the proceeds to the interbank market; the remaining portion may be retained in a foreign currency account. Exporters may use the funds in these accounts for imports or other payments pertaining to their business, or they may transfer the funds to another foreign currency account. Proceeds from exports of nonhydrocarbons and nonminerals may be surrendered to commercial banks and other authorized participants in the interbank foreign exchange market.
Financing requirementsNo.
Documentation requirementsThe requirements are not enforced in practice.
Letters of creditYes.
GuaranteesYes.
DomiciliationYes.
Preshipment inspectionYes.
Export licensesAll exports to Israel are prohibited, and certain exports are prohibited for social or cultural reasons regardless of destination.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfers
Investment-related paymentsThe transfer abroad of dividends and interest is permitted, provided it is executed through an authorized intermediary.

Information is not available on the payment or transfer of amortization of loans or depreciation of direct investments.
Prior approvalProfit remittances are permitted, provided tax obligations have been met. Authorization is to be granted by the exchange control authorities within two months of request. Transfer must be executed through an authorized intermediary.
Payments for travelResidents traveling abroad receive an annual foreign exchange allowance, and pilgrims traveling to Saudi Arabia receive an allowance in Saudi Arabian riyals; the amount may be provided in the form of checks that are cashed on arrival for those traveling by air or by sea. Travel tickets purchased by nonresidents for travel abroad must be paid for with imported foreign exchange.
Prior approvalYes.
Quantitative limitsThe quantitative limit is DA 15,000.
Indicative limits/bona fide testYes.
Personal payments
Prior approvalTransfers of alimony payments are permitted provided that the arrangement was made in an Algerian court and is enforceable in Algeria. BOA authorization is required for payments relating to family support payments; limits are set on a case-by-case basis.
Quantitative limitsThe limits for medical costs are DA 15,900 for adults and DA 7,600 for children under 15 years of age. The limit for studies abroad is DA 9,000 (previously DA 7,500) a month between September 1 and June 30.
Indicative limits/bona fide testTransfers for family financial support and alimony payments are set on a case-by-case basis.
Foreign workers’ wagesResidents of other countries working in Algeria under technical cooperation programs for public enterprises and agencies or for certain mixed companies may transfer abroad up to 100% of their salaries.
Indicative limits/bona fide testYes.
Other payments
Prior approvalApproval of the BOA is required for payments relating to membership, consulting, and legal fees.
Indicative limits/bona fide testYes.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsYes.
Surrender requirementsFifty percent of receipts must be surrendered to the banks.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital transactionsYes.
Controls on capital and money market instrumentsCapital transfers to any destination abroad are subject to individual approval by the BOA.
On capital market securities
Shares or other securities of a participating nature
Purchase locally by nonresidentsYes.
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsIn accordance with article 187 of the Law on Money and Credit (LMC), residents may not purchase real estate, monetary, or financial assets abroad using funds from activities in Algeria except as complementary to the activities abroad.
Bonds or other debt securitiesNonresidents may invest in bonds or other debt securities. Transfers abroad of proceeds from these investments are allowed, but they must be effected through an authorized intermediary.
Purchase locally by nonresidentsThe transfer abroad of proceeds from the sale of portfolio investments (bonds or other debt securities) on the stock exchange may be made freely, but transfers must be executed through an authorized intermediary.
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsThe controls governing shares or other securities of a participating nature apply.
On money market instruments
Purchase abroad by residentsThe controls governing shares or other securities of a participating nature apply.
On collective investment securities
Purchase abroad by residentsThe controls governing shares or other securities of a participating nature apply.
Controls on derivatives and other instruments
Purchase abroad by residentsThe controls governing shares or other securities of a participating nature apply.
Controls on credit operationsThere are controls on all credit transactions, guarantees, sureties, and financial backup facilities.
Controls on direct investment
Outward direct investmentYes.
Inward direct investmentForeign direct investment is permitted freely except in certain specified sectors, provided that it conforms to the laws and regulations governing regulated activities and that prior declaration is made to the authorities.
Controls on liquidation of direct investmentProceeds from disinvestment following the closing or transfer of a business operation may be transferred abroad through banks or authorized intermediaries, subject to prior approval.
Controls on real estate transactions
Purchase abroad by residentsThe controls governing shares or other securities of a participating nature apply.
Controls on personal capital transactionsn.a.
Provisions specific to commercial banks and other credit institutions
Borrowing abroadYes.
Maintenance of accounts abroadYes.
Lending locally in foreign exchangeBanks and financial institutions may onlend foreign funds borrowed abroad.
Differential treatment of deposit accounts in foreign exchange
Interest rate controlsThe interest rates applicable to foreign currency accounts are determined quarterly by the BOA.
Open foreign exchange position limitsBanks and financial institutions are required to meet the following: (1) a maximum spread of 10% between their position (short or long) in each currency and the amount of their counterpart funds in domestic currency; and (2) a maximum spread of 30% between total exposure (short and long positions, whichever is highest) for all foreign currencies and domestic currency resources.
Provisions specific to institutional investorsNo.
Other controls imposed by securities lawsn.a.
Changes During 2002
Imports and import paymentsJanuary 1. A new import tariff rate structure was introduced with rates of zero, 5%, 15%, and 30%. The temporary additional duty on certain categories of goods that was introduced in July 2001 was reduced to 36% from 48%. It is to be completely phased out by January 2006.
Changes During 2003
Imports and import paymentsJanuary 1. Joint stock companies with a minimum capital of DA 10 million owned by resident nationals of Algeria were authorized to import raw materials and manufactured goods for resale.

Angola

(Position as of February 28, 2003)

Status Under IMF Articles of Agreement
Article XIVYes.
Exchange Arrangement
CurrencyThe currency of Angola is the Angolan kwanza.
Exchange rate structureUnitary.
Classification
Managed floating with no preannounced path for the exchange rateThe exchange rate of the kwanza is market determined. However, the Banco Nacional de Angola (BNA) intervenes actively in the foreign exchange market, allowing only modest depreciations of the official exchange rate. The BNA publishes a reference rate daily, which is computed as the transaction-weighted average of the day’s rates.

Authorized foreign exchange dealers (i.e., banks and exchange bureaus) may deal among themselves and with their customers at freely negotiated rates.
Exchange taxForeign exchange operations are subject to a stamp duty of 1.5%. Transactions between banking institutions or involving banknotes and traveler’s checks are exempt from this duty.
Exchange subsidyNo.
Forward exchange marketNo.
Arrangements for Payments and Receipts
Prescription of currency requirementsTransactions with other countries may be made through bank transfers, LCs, or financing and banking agreements.
Use of foreign exchange among residentsYes.
Payments arrangements
Bilateral payments arrangements
OperativeAn agreement with Brazil is in effect
InoperativeThere are agreements with Portugal and Spain.
Administration of controlThe BNA is the exchange authority and may delegate its powers to other entities that are authorized to engage in foreign exchange activities. All capital transactions and invisible operations exceeding $50,000 or its equivalent are subject to prior BNA authorization. The BNA has authorized commercial banks to carry out certain transactions and invisible operations not exceeding $50,000 or its equivalent in the foreign exchange market. Effective February 7, 2003, foreign exchange bureaus that are licensed to conduct foreign exchange transactions may deal only in banknotes and traveler’s checks and execute current invisible operations of a private nature (Central Bank Instructive No. 2/2003). These bureaus may buy foreign currency from residents and nonresident natural and juridical persons, and sell foreign currency to residents up to the equivalent of $10,000 a person a trip, subject to the presentation of a passport with visa of country of destination (or residence identification card) and airline tickets.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)Yes.
In accordance with UN sanctionsYes.
Payments arrears
OfficialYes.
PrivateYes.
Controls on trade in gold (coins and/or bullion)
Controls on domestic ownership and/or tradeResidents are permitted to hold and trade gold only in the form of jewelry.
Controls on external tradeImports and exports of gold—both coins and bullion—are the monopoly of the BNA.
Controls on exports and imports of banknotes
On exports
Domestic currencyExports of domestic currency are prohibited.
Foreign currencyResidents are permitted to take out up to the equivalent of $10,000 in foreign exchange. They may take out amounts exceeding this limit only if they present exchange purchase documents, including statements regarding the reason for the purchase. When leaving Angola, nonresidents are allowed to take out up to $5,000; amounts exceeding this limit may be taken out, if they were declared upon arrival in the country. The export and reexport of banknotes and traveler’s checks by banking institutions require a prior authorization of the governor of the BNA.
On imports
Domestic currencyImports of domestic currency are prohibited.
Foreign currencyThere are no limits on the amount of foreign banknotes or traveler’s checks that a resident may bring into the country; for nonresidents, amounts in excess of $5,000 must be declared upon arrival. Banking institutions are free to import banknotes and traveler’s checks, but they must submit a monthly report to the BNA.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyCheckbooks may not be issued against accounts of juridical and natural persons. These accounts may be credited with foreign currency or any other instruments accepted internationally and accrued interest. These accounts may be debited with withdrawal or sale of foreign exchange to settle imports or capital payments, as allowed by law. Transfers between these accounts are permitted, but overdrafts are not.
Held abroadAfter prior BNA approval, juridical persons are allowed to open foreign exchange accounts that may be credited with their export receipts to pay for imports of goods and services and to make debt service payments. For natural persons, no approval is required for holding these accounts.
Accounts in domestic currency held abroadNo.
Accounts in domestic currency convertible into foreign currencyNo.
Nonresident Accounts
Foreign exchange accounts permittedThese accounts may be credited with foreign currency imported from abroad, with the accrued interest, or with sums from nonresidents’ type A domestic currency accounts. They may be debited for the withdrawal or sale of foreign currency, payments for foreign currency expenditures, or the repatriation of amounts authorized by the BNA.
Domestic currency accountsNonresidents may open two types of domestic currency accounts: type A and type B. The type A account may be credited with the proceeds from sales of funds from foreign exchange accounts and, after obtaining prior BNA authorization, with receipts from the nonresident’s activities in Angola. These accounts may be debited for payments of local expenses and against purchases of foreign currency to be deposited in a foreign currency account held by the same entity.

The type B account may only be credited with receipts from the nonresident’s activity in the country (when authorized by the BNA), and may only be debited for payment of local expenses.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for imports
Preshipment inspectionEffective August 9, 2002, the following require preshipment inspection: imports by government institutions and public companies and imports of boats, buses, mechanical accessories, new and used cars, receptors and transistors, objects of broadcasting, telecommunications devices, telex equipment, televisions, trucks, and scrap metal. Imports by juridical and natural persons of goods valued at more than the equivalent of $5,000 and $10,000, respectively, also require preshipment inspection. Imports of goods of lesser value are also subject to inspection if the frequency is more than once every quarter.
Import licenses and other nontariff measures
Negative listThere are restrictions on imports of currency, toxic products, and certain drugs. Imports of arms and ammunition for personal use are subject to authorization by the Ministry of the Interior.
Open general licensesImports are not subject to licenses, but must be registered under the REM (entry merchandise registration) system for statistical purposes.
Import taxes and/or tariffsThe tariff system consists of eight rates: 1%, 2%, 5%, 10%, 20%, 25%, 30%, and 35%.
Taxes collected through the exchange systemThe stamp tax is collected through the exchange system.
State import monopolyOil products and derivatives may be imported only by the public oil company. Arms and ammunition for warfare may be imported only by the state.
Exports and Export Proceeds
Repatriation requirementsYes.
Surrender requirementsDomestic oil companies must surrender all their export proceeds to the BNA. Foreign oil companies are allowed, with BNA authorization, to retain their export receipts abroad for payments of imports of goods and services, interest and profits transfer, and the amortization of capital. These companies must use funds from abroad for payment of royalties, taxes, and local expenses. Foreign exchange earnings by the non-oil sector must be surrendered to domestic banks. Diamond companies are allowed to retain in local banks a percentage of the receipts of exports for payments of imports of goods and services. They may also retain part of their receipts abroad in escrow accounts, with BNA authorization, as a guarantee against foreign borrowing.
Financing requirementsn.r.
Documentation requirements
Letters of creditYes.
GuaranteesYes.
DomiciliationYes.
Export licenses
Without quotasExports are not subject to licenses, but must be registered under the RSM (exit merchandise registration) system for statistical purposes. Reexports of goods other than personal belongings are prohibited. Exports of arms, ammunition, and ethnological collections are prohibited. Special export regimes apply to aircraft, animals and animal products, historical objects, and petroleum.
Export taxesExport taxes consist of six rates: 1%, 2%, 3%, 4%, 5%, and 10%.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersEffective February 7, 2003, banks must obtain BNA authorization in order to effect payments for invisible transactions in excess of $50,000 or its equivalent for each transaction (Central Bank Instructive No. 4/2003).
Trade-related paymentsService contracts with nonresidents in excess of $50,000 or its equivalent are subject to licensing.
Prior approvalYes.
Investment-related payments
Prior approvalYes.
Quantitative limitsForeign investors must obtain MOF authorization to remit profits and dividends, provided the investment in the resident company exceeds $250,000 or its equivalent.
Payments for travel
Quantitative limitsResidents may, upon presentation of a passport and an airline ticket, purchase foreign exchange from financial institutions as follows: for personal travel, the equivalent of $10,000 a person a trip; for business travel, a maximum of $500 a day for up to 30 days; for educational, scientific, or cultural purposes, $2,000 a person a month (limited to residents who are temporarily abroad); and for medical treatment, a maximum of $10,000 (prior to February 7, 2003, $5,000) upon presentation of medical certificate without invoice; amount is unlimited if paid directly to the bank account of the hospital.
Personal payments
Prior approvalPrior approval is required for the payment of pensions in excess of $50,000 or its equivalent.
Quantitative limitsUp to the equivalent of $2,000 a month may be authorized to Angolans or foreigners residing abroad who are direct descendants of and financially dependent on residents of Angola, provided that they are under 18 or over 60 years of age, are students, or are incapable of working.
Foreign workers’ wages
Prior approvalYes.
Credit card use abroadOnly banks may issue credit cards.
Quantitative limitsUse of credit cards abroad is limited to the equivalent of $10,000.
Other payments
Prior approvalYes.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsYes.
Surrender requirementsService earnings must be surrendered to the banks, unless the provider is authorized by the BNA to retain a certain proportion of the proceeds.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital transactionsForeign investment activities (i.e., the setting up of new companies or branches, but also acquisition of equity, total or partial takeover of operations, and lending related to profit sharing) are subject to the provisions of the Foreign Investment Law as well as the provisions of foreign exchange legislation and regulations. Implementation is the responsibility of the Foreign Investment Institute. Foreign investments in the areas of petroleum production, diamond mining, and financial institutions are governed by separate legislation. Effective February 7, 2003, all capital transfers are subject to BNA licensing (Central Bank Instructive No. 1/2003). All capital transactions must be conducted through authorized banks and require BNA approval and licensing for imports and exports of capital. Banks may perform a few capital transactions, such as donations and inheritance from abroad, without BNA approval.
Controls on capital and money market instruments
On capital market securities
Shares or other securities of a participating nature
Purchase locally by nonresidentsYes.
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsYes.
Bonds or other debt securities
Purchase locally by nonresidentsYes.
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsYes.
On money market instruments
Purchase locally by nonresidentsYes.
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsYes.
On collective investment securities
Purchase locally by nonresidentsYes.
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsYes.
Controls on derivatives and other instrumentsn.r.
Controls on credit operations
Commercial creditsOperations are subject to licensing for statistical purposes only.
By residents to nonresidentsSuppliers’ credits must be reported to the BNA.
To residents from nonresidentsSuppliers’ credits must be reported to the BNA.
Financial credits
By residents to nonresidentsYes.
To residents from nonresidentsYes.
Guarantees, sureties, and financial backup facilities
By residents to nonresidentsYes.
To residents from nonresidentsYes.
Controls on direct investment
Outward direct investmentAngolan citizens are permitted to invest abroad, in accordance with the Exchange Control Law.
Inward direct investmentForeign investment is prohibited in the following areas: (1) defense, internal public order, and state security; (2) central banking and currency issue; and (3) other areas reserved for the state.
Controls on liquidation of direct investmentWith prior approval of the MOF, foreign investors are guaranteed the right to transfer abroad the proceeds of the sale of investments, including gains and amounts owed to them after payments of taxes due.
Controls on real estate transactions
Purchase abroad by residentsYes.
Purchase locally by nonresidentsYes.
Sale locally by nonresidentsYes.
Controls on personal capital transactions
Loans
By residents to nonresidentsYes.
To residents from nonresidentsYes.
Gifts, endowments, inheritances, and legacies
By residents to nonresidentsYes.
To residents from nonresidentsYes.
Settlement of debts abroad by immigrantsYes.
Transfer of assets
Transfer abroad by emigrantsYes.
Transfer into the country by immigrantsYes.
Transfer of gambling and prize earningsYes.
Provisions specific to commercial banks and other credit institutions
Borrowing abroadYes.
Maintenance of accounts abroadYes.
Lending to nonresidents (financial or commercial credits)Yes.
Lending locally in foreign exchangeBanks may lend locally in foreign exchange to resident exporters.
Differential treatment of deposit accounts in foreign exchange
Reserve requirementsEffective February 7, 2003, the reserve requirement for demand deposits in both local and foreign currencies is 10% (Central Bank Instructive No. 08/2003). The reserve requirement coefficient is calculated weekly, based on the average deposits held the previous week. Prior to this date, demand deposits in local currency were subject to a reserve requirement of 30%. Up to 5% of the reserve requirement base may be held in securities or treasury bonds of the BNA. The coefficient of the reserve requirement for central government deposits in local and foreign currencies is 100%.
Liquid asset requirementsThe liquid asset requirement is 50% of the foreign exchange portfolio.
Credit controlsBanks may lend locally in foreign exchange only to resident exporters.
Differential treatment of deposit accounts held by nonresidents
Reserve requirementsYes.
Liquid asset requirementsYes.
Investment regulations
Abroad by banksYes.
In banks by nonresidentsYes.
Open foreign exchange position limitsEffective February 7, 2003, banks may hold daily foreign exchange positions of up to 20% of their own funds (Central Bank Instructive No. 05/2003). Prior to this date, banks could hold daily foreign exchange positions of up to the equivalent of $500,000; for foreign exchange bureaus, the amount was up to $150,000.
On resident assets and liabilitiesYes.
On nonresident assets and liabilitiesYes.
Provisions specific to institutional investorsn.r.
Other controls imposed by securities lawsn.r.
Changes During 2002
Imports and import paymentsAugust 9. The preshipment inspection system was revised.
Changes During 2003
Arrangements for payments and receiptsFebruary 7. Foreign exchange bureaus that are licensed to conduct foreign exchange transactions may deal only in banknotes and traveler’s checks and execute current invisible operations of a private nature (Central Bank Instructive No. 2/2003). Foreign exchange bureaus may buy foreign currency from residents and nonresident individuals and juridical persons, and sell foreign currency to residents up to the equivalent of $10,000 a person a trip, subject to presentation of passports with visa of country of destination (or residence identification card) and airline tickets.
Payments for invisible transactions and current transfersFebruary 7. Banks must obtain BNA authorization in order to effect payments for invisibles in excess of $50,000 or its equivalent for each transaction (Central Bank Instructive No. 4/2003).
February 7. The limit for medical treatment was increased to the equivalent of $10,000 from $5,000 without an invoice. There is no limit if paid directly to the bank account of the hospital.
Capital transactionsFebruary 7. All capital transfers are subject to BNA licensing (Central Bank Instructive No. 1/2003). All capital transactions must be conducted through authorized banks and require BNA approval and licensing for imports and exports of capital. Banks may perform a few capital transactions, such as donations and inheritance from abroad, without BNA approval.
Provisions specific to commercial banks and other credit institutionsFebruary 7. The reserve requirement for demand deposits in both local and foreign currencies is 10% (Central Bank Instructive No. 08/2003). The reserve requirement coefficient is calculated weekly, based on the average deposits held the previous week. Prior to this date, demand deposits in local currency were subject to a reserve requirement of 30%. Up to 5% of the reserve requirement base may be held in securities or treasury bonds of the BNA. The coefficient of the reserve requirement for central government deposits in local and foreign currencies is 100%.
February 7. Banks may hold daily foreign exchange positions of up to 20% of their own funds (Central Bank Instructive No. 05/2003). Prior to this date, banks could hold daily foreign exchange positions of up to the equivalent of $500,000; for foreign exchange bureaus, the amount was up to $150,000.

Antigua and Barbuda

(Position as of December 31, 2002)

Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: November 22, 1983.
Exchange Arrangement
CurrencyThe currency of Antigua and Barbuda is the Eastern Caribbean dollar issued by the ECCB.
Exchange rate structureUnitary.
Classification
Exchange arrangement with no separateThe Eastern Caribbean dollar is pegged to the U.S. dollar, the intervention currency, at legal tender EC$2.70 per US$1. The ECCB also quotes daily rates for the Canadian dollar and the pound sterling.
Exchange taxA foreign exchange levy of 1% is applied on purchases of foreign currency.
Exchange subsidyNo.
Forward exchange marketNo.
Arrangements for Payments and Receipts
Prescription of currency requirementsSettlements with residents of member countries of the CARICOM must be made either in the currency of the country concerned or in Eastern Caribbean dollars. Exports to Jamaica are settled in U.S. dollars. Settlements with residents of other countries may be made in any foreign currency or in Eastern Caribbean dollars.
Use of foreign exchange among residentsYes.
Payments arrangements
Regional arrangementsAntigua and Barbuda is a member of the CARICOM.
Clearing agreementsYes.
Administration of controlThe MOF applies exchange controls to all foreign currency transactions. However, up to the equivalent of EC$250,000 in foreign currency may be purchased without MOF approval.