Annual Report on Exchange Arrangements and Exchange Restrictions 2005


International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2005
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(Position as of December 31, 2004)

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.
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 and money changers on the basis of the cross rates for the dollar in international markets. The full issue of Djibouti francs is covered by foreign exchange reserves.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketNo.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payments arrangementsNo.
Administration of controlNo.
International security restrictions
In accordance with UN sanctionsYes.
Payments arrears
OfficialBilateral agreements have been reached with several Paris Club creditors.
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 held abroadNo.
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 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 imports
Preshipment inspectionYes.
Letters of creditYes.
Import licenses and other nontariff measures
Negative listYes.
Import taxes and/or tariffsFormal customs duties are not imposed 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 products, including alcoholic beverages, noncarbonated mineral water, petroleum products, qat, and tobacco, are subject to a surtax.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsYes.
Documentation requirements
Letters of creditYes.
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 transactionsYes.
Controls on capital and money market instrumentsNo.
Controls on derivatives and other instrumentsNo.
Controls on credit operationsThere are controls on all credit transactions between residents and nonresidents, including transactions in the form of guarantees, sureties, and financial backup facilities within the limits established by the banking regulations, for the purpose of complying 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 transactionsNo.
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 currency of denomination, as well as with respect to maturity and interest rate.
Other controls imposed by securities lawsNo.
Changes During 2004
No significant changes occurred in the exchange and trade system.

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