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Currency exchange control

Transactions in Foreign Currency

 

The legislation of the Kyrgyz Republic[1] provides that a financial liability must be expressed and settled in the national currency. The use of foreign currency and payment documents in foreign currency for settling financial obligations within the territory of the Kyrgyz Republic is allowed in cases and subject to procedures established by legislation.  A monetary obligation may provide that it must be paid in a local currency equivalent of certain amount in foreign currency. In such case, the amount payable in a local currency is calculated at the official exchange rate of the respective currency on the day of payment, unless other rate or date is set by the law or agreement of the parties. Under the legislation of the Kyrgyz Republic, local resident may take loans and credits in any currency, as well as buy and sell foreign currency without restriction or unreasonable delay at authorized banks or currency exchange offices.

On the 8th of May 1992, the Kyrgyz Republic joined the International Monetary Fund (IMF), and in March 1995 assumed obligations under Clause VIII of the IMF Agreement, under which the Kyrgyz Republic has to refrain from imposing restrictions upon currency rate in payments and transfers on current international transactions, as well as from discriminating currency regimes or multiple currency rate practices without the consent of the IMF.

 

Therefore, currency exchange control is virtually absent in the Kyrgyz Republic, as there are no restrictions upon: 

 

  • Transfer of foreign currency across borders; 
  • Currency import and export are not restricted if  declared at customs points; 
  • National and foreign currency exchange transactions;
  • Purchase and sale of foreign currency by residents and non-residents at duly licensed banks and exchange offices; 
  • One-time cash transactions of exchanging national and foreign currency;
  • Current payments, operating revenues and cross-border transfer of capital. 

 

Under Kyrgyz legislation[2], the transfer of currency, valuables other than currency, and the recording of necessary data in the customs declaration (lists), are performed in accordance with Kyrgyz customs legislation. 

 

When receiving credits or loans, opening accounts or deposits outside the Kyrgyz Republic, Kyrgyz residents must register them with the National Bank of the Kyrgyz Republic and upon its request provide information on the respective accounts or deposits and other information related to transactions in foreign currency. 

 

[1] Article 307 of the Civil Code of the Kyrgyz Republic dated  May 8, 1996 (with the latest amendments as of  July 23, 2016 No. 134).

[2] The Law of the Kyrgyz Republic “On Foreign Currency Transactions” dated July 5, 1995 (with the latest amendments as of April 26, 2013 No. 60).