Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Chapter

TAJIKISTAN

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

Status under IMF Articles of Agreement
Article VIIIDate of acceptance: December 9, 2004.
Exchange Measures
Restrictions and/or multiple currency practicesNo restrictions as reported in the latest staff report as of December 31, 2006.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)Exchange restrictions have been imposed in accordance with UN resolutions.
Other security restrictionsCertain measures have been taken to restrict financial operations and to freeze the accounts belonging to certain persons or organizations associated with terrorism, in accordance with (1) relevant UN Security Council resolutions and (2) the list of current terrorist organizations compiled by the U.S. Secretary of State.
References to legal instruments and hyperlinksn.a.
Exchange Arrangement
CurrencyThe currency of Tajikistan is the Tajik somoni.
Exchange rate structureUnitary.
Classification
Managed floating with no predetermined path for the exchange rateThe exchange rate of the somoni is determined by supply and demand in the foreign exchange market, in which the National Bank of Tajikistan (NBT) may intervene only in the case of excessive fluctuations. The official exchange rate of the somoni against the dollar is determined and set daily by the NBT on the basis of the weighted average exchange rates of dollar transactions in the interbank and intrabank foreign exchange markets as of 3:00 p.m. on the current day. Exchange rates for other currencies are determined indirectly through cross-exchange rates of the dollar against these currencies. The foreign exchange market consists of the over-the-counter interbank market, the market for intrabank client transactions, and a network of foreign exchange bureaus belonging to authorized banks and private persons that conduct exchange transactions with cash foreign currency.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketNo.
References to legal instruments and hyperlinksInstruction on the Procedure for Setting the Official Exchange Rate of the Somoni against Foreign Currencies (Resolution of the NBT Board No. 159 of June 29, 2005).
Arrangements for Payments and Receipts
Prescription of currency requirementsResidents and nonresidents may use somoni for the settlement of all transactions without any exception. Settlements between residents and nonresidents in international payments may be made in any foreign currency, except settlements for exports of cotton products and aluminum, which are conducted solely in dollars or other freely convertible currencies.
Controls on the use of domestic currency
For current transactions and paymentsYes.
Use of foreign exchange among residentsThe use of foreign exchange for transactions and as a means of payment in Tajikistan is prohibited except in cases authorized by the NBT.
Payments arrangements
Barter agreements and open accountsBarter trade is allowed only for aluminum and electricity.
Administration of controlThe NBT establishes the procedures for foreign exchange transactions and monitors their observance, issues licenses to banks for banking operations in foreign exchange, conducts exclusive supervision of their activity, sets open foreign exchange position limits for banks, and monitors the transactions of authorized banks. The MOF monitors the status of government and guaranteed debt and registers inward direct investments. The Ministry of State Revenue and Duties supervises the collection of taxes and customs duties in international trade.
Payments arrears
OfficialYes.
Controls on trade in gold (coins and/or bullion)Gold-extracting joint ventures are subject to controls.
On external tradeThe export of gold and other precious metals is controlled by the government.
Controls on exports and imports of banknotes
On exports
Domestic currencyDomestic currency may be exported freely and is not subject to customs regulation.
Foreign currencyForeign currencies up to $3,000 may be exported freely by individuals without declaration in written form and without presentation of permits justifying the exportation of cash foreign currency; amounts between $3,000 and $10,000 may be exported with mandatory written declaration, without presentation of permits.
On imports
Foreign currencyImports by individuals are permitted without restrictions, but customs rules have to be observed. Legal entities may import only through authorized banks and authorized credit institutions. A customs fee of 0.15% is levied on imports of cash by authorized banks.
References to legal instruments and hyperlinksInstruction No. 142 on the Procedure for the Import and Export of Foreign Exchange Cash and Securities Denominated in Foreign Currency into and from the Republic of Tajikistan (adopted by Resolution of NBT the Board No. 269 and of the Republic of Tajikistan Ministry of State Revenue and Duties, Order No. 323, September 29, 2005).
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyEffective February 10, 2006, there are no restrictions on depositing cash in these accounts.
Held abroadNBT approval is required, except when accounts are opened by resident individuals staying abroad temporarily (e.g., in connection with work, study, medical treatment, or for humanitarian purposes). Accounts may be opened at any bank.
Approval requiredYes.
Accounts in domestic currency held abroadn.r.
Accounts in domestic currency convertible into foreign currencyAll accounts in domestic currency are convertible.
References to legal instruments and hyperlinksInstruction No. 146 on the Procedure to Be Followed by Banks in the Opening and Maintenance of Foreign Exchange Accounts of Legal Entities and Individuals (NBT Resolution No. 46, February 10, 2006).
Nonresident Accounts
Foreign exchange accounts permittedAccounts may be opened at any bank.
Domestic currency accountsYes.
Convertible into foreign currencyNonresident legal entities may acquire foreign exchange in Tajikistan’s foreign exchange market with somoni earnings from current and capital account transactions.
Blocked accountsNo.
References to legal instruments and hyperlinksInstruction No. 146 on the Procedure to Be Followed by Banks in the Opening and Maintenance of Foreign Exchange Accounts of Legal Entities and Individuals (NBT Resolution No. 46, February 10, 2006); Instruction on the Procedure to Be Followed by Authorized Banks in the Opening and Maintenance of Nonresident Accounts in the Currency of the Republic of Tajikistan (approved by Protocol of the NBT Board No. 51, September 16, 1997, as amended by NBT Board Protocol No. 32, December 7, 1998).
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsThe value of all imported goods must be equal to the amount paid for them. If goods are not delivered, the importer must return the funds transferred earlier within the time period stipulated in the contract.
Import licenses and other nontariff measuresImports of tobacco and tobacco products require licenses.
Negative listThe importation of firearms, narcotics, poisons, chemical weapons, and nuclear materials is prohibited.
Licenses with quotasLicenses with quotas apply to imports of ethyl alcohol and alcoholic beverages.
Import taxes and/or tariffsImports are subject to duties.
State import monopolyNo.
References to legal instruments and hyperlinksLaw of the Republic of Tajikistan on Foreign Exchange Regulation and Foreign Exchange Control.
Exports and Export Proceeds
Repatriation requirementsForeign exchange proceeds from exports must be credited to the accounts of residents maintained with authorized banks, or to their accounts abroad with NBT approval. Export proceeds must be received in full and on a timely basis.
Financing requirementsNo.
Documentation requirementsFor exports of cotton, aluminum, and tobacco, a 100% advance payment is required. For all other goods, foreign exchange proceeds must be received within 120 days of the export date. NBT authorization is required for deferment of export payments by more than 120 days. Effective January 26, 2007, ADs are not required to process export transaction reports.



Previously, a transaction report was required for each export transaction, with the exception of transactions that were 100% prepaid. All transactions are subject to monitoring by customs authorities and authorized banks until their full completion.
Export licensesLicenses are required for the production, processing, and export of tobacco and tobacco products.
With quotasLicenses with quotas apply to exports and wholesale purchases of ethyl alcohol and alcoholic beverages.
Export taxes
Other export taxesA sales tax of 10% and 1% applies on exports of cotton fiber and aluminum, respectively.
References to legal instruments and hyperlinksLaw of the Republic of Tajikistan on Foreign Exchange Regulation and Foreign Exchange Control; Decree No. 424 of the President of the Republic of Tajikistan, February 24, 2006, on Liberalization of Foreign Exchange and Export Operations and Measures to Ensure Full Repatriation of Foreign Exchange Proceeds; Regulation on the Procedure for Foreign Exchange Monitoring of the Transfer of Foreign Exchange Export Proceeds into the Republic of Tajikistan (approved by Decision of the NBT Board No. 38 and Decision No. 132 of August 14, 1996, of the Customs Committee under the Republic of Tajikistan).
Payments for Invisible Transactions and Current Transfers
Controls on these transfersEffective February 10, 2006, payments to nonresidents by residents require presentation of documents proving the validity of payments. Resident individuals may transfer foreign exchange without opening accounts within the limits of the amounts supported by documents. In addition, they may effect one transfer a business day for a moderate amount of payment for current consumption.
Trade-related payments
Indicative limits/bona fide testSupporting documents for the payment must be presented.
Investment-related paymentsTransfers of interest, dividends, other investment income; repayment of loans; and the amortization of direct investment do not require permits.
Prior approvalNBT approval is required.
Indicative limits/bona fide testSupporting documents for the payment must be presented.
Payments for travel
Indicative limits/bona fide testSupporting documents for the payment must be presented.
Personal payments
Indicative limits/bona fide testSupporting documents for the payment must be presented.
Foreign workers’ wages
Indicative limits/bona fide testSupporting documents for the payment must be presented.
Other payments
Indicative limits/bona fide testSupporting documents for the payment must be presented.
References to legal instruments and hyperlinksLaw of the Republic of Tajikistan on Foreign Exchange Regulation and Foreign Exchange Control; Instruction No. 147 on the Procedure for Transactions Involving the Transfer of Foreign Exchange from the Republic of Tajikistan and the Receipt of Foreign Exchange Transferred into the Republic of Tajikistan by Individuals without Opening Foreign Exchange Accounts at Banks (approved by Decision No. 47 of the NBT Board, February 10, 2006); Regulation on the Procedure for Foreign Exchange Transactions Involving Capital Movements.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
References to legal instruments and hyperlinksLaw of the Republic of Tajikistan on Foreign Exchange Regulation and Foreign Exchange Control.
Capital Transactions
Controls on capital transactionsYes.
Repatriation requirementsNo.
Controls on capital and money market instruments
On capital market securities
Shares or other securities of a participating nature
Purchase locally by nonresidentsNBT notification is required for the purchase of more than 5% of shares of banks; NBT approval is required for the purchase of more than 20%.
Sale or issue locally by nonresidentsMOF approval and NBT clearance are required.
Purchase abroad by residentsNBT approval is required.
Sale or issue abroad by residentsRegistration with the MOF and approval of the NBT are required.
Bonds or other debt securitiesRegistration with the MOF is required.
Purchase locally by nonresidentsYes.
Sale or issue locally by nonresidentsYes.
Purchase abroad by residentsNBT approval is required.
Sale or issue abroad by residentsNBT approval is required.
On money market instrumentsNBT approval is required only when these instruments are treated as securities and when payment on a bill of exchange is deferred by more than 180 days.
Purchase locally by nonresidentsYes.
Sale or issue locally by nonresidentsResidents may purchase instruments from nonresidents only with NBT approval.
Purchase abroad by residentsNBT approval is required.
Sale or issue abroad by residentsNBT approval is required.
On collective investment securitiesThe regulations governing money market instruments apply.
Controls on derivatives and other instruments
Purchase abroad by residentsNBT approval is required.
Sale or issue abroad by residentsNBT approval is required.
Controls on credit operations
Commercial creditsCredits with maturities exceeding one year require NBT approval.
Financial creditsNo controls apply on short-term loans. NBT approval is required for long-term loans.
Guarantees, sureties, and financial backup facilitiesControls apply to all these transactions.
Controls on direct investment
Outward direct investmentNBT approval is required.
Inward direct investmentNBT approval is required.
Controls on liquidation of direct investmentYes.
Controls on real estate transactions
Purchase abroad by residentsNBT approval is required.
Purchase locally by nonresidentsYes.
Sale locally by nonresidentsYes.
Controls on personal capital transactions
Transfer of gambling and prize earningsSupporting documents must be presented to the bank effecting the transfer.
References to legal instruments and hyperlinksLaw of the Republic of Tajikistan on Foreign Exchange Regulation and Foreign Exchange Control; Regulation on the Procedure for Foreign Exchange Transactions Involving Capital Movements.
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutionsBanks are permitted to hold 50% of their capital in foreign exchange.
Borrowing abroadOnly banks licensed by the NBT to conduct operations in foreign exchange may borrow from abroad.
Maintenance of accounts abroadAn NBT license is required to open a correspondent account.
Purchase of locally issued securities denominated in foreign exchangen.r.
Differential treatment of deposit accounts held by nonresidents
Liquid asset requirementsThe limit is 30% up to 30 days.
Investment regulations
Abroad by banksThe limit is 20% of capital.
In banks by nonresidentsThe 35% quota that applied for participation of foreign capital in the overall capital of the banking sector has been abolished.
Open foreign exchange position limitsEffective January 1, 2006, the aggregate open long and short positions are limited to 20% and 10% of a bank’s capital, respectively. The limits on individual long and short positions in separate currencies are 16% and 8% of regulatory capital, respectively.
Provisions specific to institutional investorsNo.
References to legal instruments and hyperlinksLaw No. 133 of the Republic of Tajikistan on Banks and Banking, December 28, 2005.
Changes during 2006
Resident accountsFebruary 10. The restriction on depositing cash in resident foreign currency accounts was abolished.
Payments for invisible transactions and current transfersFebruary 10. Payments to nonresidents by residents required presentation of supporting documents. Resident individuals were permitted to transfer foreign exchange without opening accounts within the limits of the amounts supported by documents and to effect one transfer a business day for a moderate amount of payment for current consumption.
Provisions specific to the financial sector
Provisions specific to commercial banks and other credit institutionsJanuary 1. The aggregate open long and short positions were limited to 20% and 10% of a bank’s total capital, respectively. The limits on individual open long and short positions in separate currencies were 16% and 8% of regulatory capital, respectively.
Changes during 2007
Exports and export proceedsJanuary 26. The requirement that ADs process transaction reports on exports was abolished.

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