Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Chapter

KIRIBATI

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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(Position as of December 31, 2006)

Status under IMF Articles of Agreement
Article VIIIDate of acceptance: August 22, 1986.
Exchange Measures
Restrictions and/or multiple currency practicesInformation is not publicly available.
International security restrictionsNo.
References to legal instruments and hyperlinksn.a.
Exchange Arrangement
CurrencyThe currency of Kiribati is the Australian dollar.
Other legal tenderA small number of Kiribati coins are 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.
References to legal instruments and hyperlinksn.a.
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.
Controls on the use of domestic currencyn.r.
Use of foreign exchange among residentsn.r.
Payments arrangements
Regional arrangementsKiribati participates in PACER and PICTA.
Administration of controlNo.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)Only ADs are permitted to own or trade in gold.
On domestic ownership and/or tradeYes.
On external tradeYes.
Controls on exports and imports of banknotesNo.
References to legal instruments and hyperlinksn.a.
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.
References to legal instruments and hyperlinksn.a.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsn.r.
Convertible into foreign currencyn.r.
Approval requiredn.r.
Blocked accountsNo.
References to legal instruments and hyperlinksn.a.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for imports
Domiciliation requirementn.r.
Preshipment inspectionn.r.
Letters of creditn.r.
Othern.r.
Import licenses and other nontariff measures
Positive listn.r.
Negative listImports of some goods are prohibited for health, safety, or environmental reasons.
Open general licensesn.r.
Licenses with quotasn.r.
Other nontariff measuresn.r.
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.
References to legal instruments and hyperlinksn.a.
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.
References to legal instruments and hyperlinksn.a.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
References to legal instruments and hyperlinksn.a.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsn.r.
Restrictions on use of fundsNo.
References to legal instruments and hyperlinksn.a.
Capital Transactions
Controls on capital transactionsThese transactions are covered by the provisions of the Exchange Control Act.
Repatriation requirementsNo.
Controls on capital and money market instrumentsControls apply to all these transactions.
Controls on derivatives and other instrumentsControls apply to all these transactions.
Controls on credit operationsControls apply to all these transactions.
Controls on direct investment
Outward direct investmentYes.
Inward direct investmentThe authorities encourage investments in the export-promoting and 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 transactions
Loansn.r.
Gifts, endowments, inheritances, and legaciesn.r.
Settlements of debts abroad by immigrantsn.r.
Transfer of assetsn.r.
References to legal instruments and hyperlinksn.a.
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutionsn.r.
Provisions specific to institutional investors
Insurance companiesn.r.
Pension fundsn.a.
Investment firms and collective investment fundsn.a.
References to legal instruments and hyperlinksn.a.
Changes during 2006
No significant changes occurred in the exchange and trade system.

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