Azerbaijani National Bank Agrees to Duty-Free Outflow of Capital

Business Materials 30 May 2007 18:30 (UTC +04:00)

Azerbaijan, Baku / Trend corr I. Khalilova / National Bank of Azerbaijan (NBA) has agreed to the introduction of duty-free outflow of capital from Azerbaijan, according to the head of the Secretariat on Azerbaijan's Joining the World Trade Organization (WTO), Adalat Muradov.

According to Muradov, the Law on Currency Management completely meets the WTO's requirements, except in restrictions on capital flow.

Any person in Azerbaijan can take out up to $1,000 from Azerbaijan duty-free, but those who take out up to $10,000 have to pay customs. Currency up to $50,000 can be taken out only through the bank system and the source of income has to be indicated. The NBA, which is one of the main regulators of Azerbaijani currency market, has agreed to annul the customs on currency outflow. "Outflow of surplus dollar supply will enable intensification of fortification of manats (Azerbaijani currency).

The changes are provided by special regulations submitted to the Cabinet of Ministers for approval.

The NBA also has intentions to enable natural persons to take out capital for purchasing securities in order to decrease the pressure upon inflation due to huge currency inflow to Azerbaijan expected to occur in 2007 and further years. With all this going on the NBA can issue permission for purchase of securities of high-rating banks and government. The rating has to be higher than AA. In accordance with the changes Azerbaijani natural persons may invest in the implementation of projects outside the country without the NBA's permission. Informing the NBA will be enough.