Currency regulation

        The national currency of the Republic of Belarus and the only legal payment means in its territory is the Belarusian rouble. As a result of transitional processes taking place in the economy of the republic the Belarusian rouble today is subject to devaluation in relation to freely convertible currencies, which is carried on by the National Bank of the Republic of Belarus according to the plan in accordance with the level of inflation, the condition of foreign trade and other macroeconomic factors.
        The smooth devaluation of the national currency and the existing problems with the free purchase of currency resources at certain segments of the currency market do not allow, so far, recognising the Belarusian rouble as a fully stable convertible currency.
        Today, redistribution of currency resources in the economy of the Republic of Belarus is effected at:

• the Belarusian Currency and Stock Exchange,

• the extra-exchange market of non-cash foreign currency,

• the market of foreign currency in cash.

        The offer of currency resources at the Belarusian Currency and Stock Exchange is formed at the expense of the 30% mandatory sale of receipts of enterprises from exports of goods and services. Mandatory for sale are 30% of the resources in freely convertible currency and Russian roubles received on account of the Belarusian artificial persons and entrepreneurs. Mandatory sale is made within 5 days from the time of receipt of foreign currency on the accounts. In some cases foreign currency is not liable to mandatory sale. For example, it regards currency received as credits to be paid to non-residents as part of repay of debts, currency not owned by artificial persons and entrepreneurs by the right of property and currency received in certain cases by enterprises with foreign investments.
        For the purpose of control over the full and timely mandatory sale, the Belarusian economic subjects have the right to have only one current account in foreign currency in the authorised banks of the Republic of Belarus.
        To open a current account in foreign currency abroad, the Belarusian economic subjects need a special permit by the National Bank of the Republic of Belarus.
        The rate of transactions on sale and purchase of US dollars at the Belarusian Currency and Stock Exchange is used as the basis for establishing the official rate of the National Bank of the Republic of Belarus. In this case the official rate of the Belarusian rouble to the US dollar is established directly by the results of auctions and in relation to other currencies with due account of the official rate of the Belarusian rouble to the US dollar and the cross rates of the US dollar to other currencies according to the world market. This official rate is used for all purposes of account, taxation and reporting.
        From 1 May 1999, the National Bank of the Republic of Belarus has conducted official quotation of the Belarusian rouble to foreign currency according to two lists of foreign currency.
        The rate for transactions at extra-exchange market of non-cash foreign currencies of the Republic of Belarus is established by the participants themselves on the basis of the relationship between demand and offer.
        Today, the extra-exchange market of non-cash foreign currencies is the most dynamically developing segment of the domestic currency market of the Republic of Belarus.
        The exchange rate on the market of cash foreign currencies, where authorised banks make operations with the population, is also established on the basis of the relationship between demand and offer. In this case the exclusive right to make currency-exchange operations with the population belongs to the authorised banks of the Republic of Belarus.
        Settlements on operations between residents and non-residents are made in freely convertible currencies. Settlements in other currencies and in Belarusian roubles are made if this is provided for by inter-governmental agreements or by agreements between the national (central) banks of the parties making settlements.
        For the purpose of development of foreign trade and expansion of the sphere of use of the national currency of the Republic of Belarus, the Agreement was made on formation of the Payment Union of the CIS countries (1994) and a number of bilateral agreements between Belarus and the central banks of the CIS countries and the Baltic States. According to these agreements the Belarusian rouble and the national currencies of these countries may be used as a means of payment on foreign economic transactions with these countries; also, freely convertible currency may be used for this purposes.
        Special attention is paid to the return of the currency receipts to the Republic and to the regulation of capital flows in the economy of the Republic of Belarus.
        Concrete time periods are set for the return of currency receipts on export contracts and of goods on import contracts. The time for the receipts of non-residents from the sale (realisation) of products on an export contract constitutes not more than 120 calendar days from the date of shipment of products by the supplier, while the time for the receipts from realisation of word and services is not more than 60 calendar days after the day of performance of work or provision of services. The time of receipt of commodities from a non-resident by an import contract is not more than 60 calendar days from the date of payment by the receiver (resident) for the commodities (work or services). The time is set exclusively for residents that are Belarusian economic subjects, so that, when they make foreign trade contracts, they must include the allowed time periods into contracts and must observe them.
        Operations with foreign currency and securities in foreign currency are divided into current operations with current and currency operations connected with the movement of capital. Currency operations connected with the movement of capital always require a special permit of the Ministry of Foreign Affairs of the Republic of Belarus and a license of the National Bank of the Republic of Belarus, since the currency used in these operations is used as capital and as a means for obtaining incomes (capital) and for investment into economies of other states.
        Economic subjects of the Republic of Belarus with all forms of property must assure the receipt of monetary resources from export of products (work or services) to the accounts of authorised banks of the Republic of Belarus. Direct transfer of resources due to the resident of the Republic of Belarus through a foreign economic contract from a non-resident or in favour of another non-resident through a contract on reassignment of the demand or for transfer of a debt may be allowed only when in conformity with these contracts the economic subject of the Republic of Belarus receives raw materials, other materials, equipment and components or energy resources for his own needs.
        For each foreign trade transaction the exporter or the importer must, before producing commodities for customs clearance, submit to the customs authorities for registration the transaction certificate with the contract the data from which are stated in the transaction certificate.
        The transaction certificate is the main document of the currency control. The procedure of its filling is defined by the State Customs Committee.
        Before the transaction certificate is submitted to the customs authorities, the bank must put a visa in it.
        Agents or authorities of currency control in the Republic of Belarus are:

• customs authorities;

• banks;

• the Ministry of Foreign Affairs; and

• the currency control inspection authorities.

        Prepayment for imported commodities (work or services) for the mount equivalent up to $US 100,000 may be effected without restrictions while prepayment for the amount of $US 100,000 or more shall be made only when there is a guarantee of the bank that provides services to the supplier. Guarantees shall mean:

• a guarantee of return of the advance payment (Advance Payment Guarantee);

• a guarantee of due execution of the contract (Performance Bond). In this case the guarantee (bond) must be issued by the bank the data on which are published in The Bankers Almanac.

        For the purpose of involvement into the national economic circulation of foreign currency in the Republic of Belarus, it is temporarily allowed to make retail sale in certain types of commodities and services with payment in foreign currency.
        Import and export of capital in the Republic of Belarus should be made in conformity with the Regulations of the National Bank "On The Procedure Of Currency Operations Connected With Movement Of Capital". Import of capital into the Republic in any form may be made without any restrictions. Credits (loans) from non-residents involved by residents of the Republic for the period of more than 180 days shall be registered. This procedure is only of registration character and is not connected with any restrictions both for residents and for non-residents.
        For residents of the Republic of Belarus making operations connected with the movement of capital, it is necessary to obtain a permit in the following cases:

• opening of an account in a foreign bank;

• making of a contribution into the authorised capital of a non-resident;

• acquisition of securities of non-residents;

• acquisition of immovable property abroad;

• giving of credits (loans) to non-residents for a time over 180 days both in a foreign currency and in Belarusian roubles.

        Artificial persons that are non-residents have the right to open in authorised banks of the Republic of Belarus accounts both in a foreign currency and in the currency of the Republic of Belarus. To open accounts by artificial persons that are non-residents with whose countries the respective agreements have been made on settlement between governments or central banks, a permit of the Central Bank of the given country is also needed.
        Sources of funds on accounts in foreign currency may be the following:

• funds transferred, imported or transmitted from abroad;

• receipts from residents and non-residents for commodities, work and services realised (sold) in the territory of the Republic of Belarus;

• interests paid by the authorised banks for the keeping of funds on accounts and on resources placed as deposits and other types of debentures;

• receipts from accounts of other non-residents in authorised banks of the Republic of Belarus;

• receipts from investments in the territory of the Republic of Belarus;

• resources received for repay of other commitments before the owners of accounts.

        Resources from currency accounts of non-residents may be used for:

• acquisition of commodities, work or services in the territory of the Republic of Belarus;

• placement as term deposits and other types of debentures;

• investments in the territory of the Republic of Belarus;

• payment of charitable nature;

• payment for other commitments before residents and non-residents.

        Resources from the said accounts in authorised banks may be freely transferred from the Republic of Belarus or sold at the domestic currency market for the currency of the Republic of Belarus.
        Enterprises that are non-residents may have in authorised banks of the Republic of Belarus three types of accounts in Belarusian roubles:

• accounts in the currency of the Republic of Belarus type E (investment);

• accounts in the currency of the Republic of Belarus type T (current);

• accounts in the currency of the Republic of Belarus type C (securities);

        The T accounts shall be used to transfer roubles from operations of the current character, namely: receipts from residents for commodities supplied to the Republic of Belarus, work performed or services provided and for transfers of non-trade character.
        The E and C accounts shall be used respectively for transfer of resources from the sale of currency and investments and from realisation of state securities and securities of the National Bank of the Republic of Belarus that were earlier acquired for a definite period of time.
        Enterprises that are non-residents of the Republic of Belarus may acquire foreign currency on the domestic market from E and C accounts. Roubles from T accounts may be used for the purposes connected with operations of the current character.
        Non-resident banks may open in their name, in authorised banks of the Republic of Belarus, only such correspondent accounts in the currency of the Republic of Belarus that are designed for payments stipulated by the regime of T and E accounts.
        Thus, the policy of the state in the sphere of regulation of the currency system is aimed at forming in the Republic of Belarus a stable freely convertible national currency, developing foreign economic relations with countries of the CIS, the Baltic States and other countries.