Chapter

KIRIBATI

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2004
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(Position as of December 31, 2003)
1 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 rates 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 any currency. Purchases and sales of foreign currencies in exchange for Australian dollars must be undertaken with the BOK, the only authorized foreign exchange dealer.
Payments arrangementsYes.
Regional arrangementsKiribati participates in PACER and PICTA.
Administration of controlNo.
International security restrictionsNo.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)Only authorized dealers are permitted to own or trade in gold.
Controls on domestic ownership and/or tradeYes.
Controls on external tradeYes.
Controls on exports and imports of banknotesNo.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency held abroadn.r.
Accounts in domestic currency convertible into foreign currencyn.r.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsn.r.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsn.r.
Import licenses and other nontariff measures
Negative listImports of some 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.r.
Export licensesCopra may be exported only through the Kiribati Copra Cooperative Society.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsn.r.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital transactionsThese transactions are covered by the provisions of the Exchange Control Act.
Controls on capital and money market instrumentsControls apply on all transactions in capital and money market instruments.
Controls on derivatives and other instrumentsControls apply on all these transactions.
Controls on credit operationsControls apply on all these transactions.
Controls on direct investment
Outward direct investmentYes.
Inward direct investmentThe authorities encourage investments in the export-promoting or import-substituting sectors. All applications for foreign investment up to the equivalent of $A 250,000 must be submitted to the Foreign Investment Commission for approval. Applications with a larger capital contribution are subject to cabinet approval.
Controls on liquidation of direct investmentn.r.
Controls on real estate transactions
Purchase locally by nonresidentsNonresidents are not permitted to purchase land or real estate.
Sale locally by nonresidentsYes.
Controls on personal capital transactionsn.r.
Provisions specific to commercial banks and other credit institutionsLegislation related to banking and prudential regulations related to lending and financial institutions are currently being formulated.
Provisions specific to institutional investorsn.r.
Other controls imposed by securities lawsn.r.
Changes During 2003
No significant changes occurred in the exchange and trade system.

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