Uzbekistan to introduce free currency conversion

Uzbekistan Materials 4 September 2017 10:51 (UTC +04:00)

Tashkent, Uzbekistan, Sept. 4

By Demir Azizov – Trend:

Starting from September 5, 2017, legal entities and individuals of Uzbekistan will be able to freely carry out operations for buying and selling foreign currency at market rates in the conversion departments of commercial banks.

The relevant presidential decree “On priority measures for the liberalization of monetary policy”, posted on the Uzbek president’s website, says that individual entrepreneurs without education and legal entities involved in import of consumer goods have the right to conduct currency transactions through bank accounts in the manner established for individuals, and those who have foreign currency revenues have the right to withdraw foreign currency from their bank accounts.

Currency funds purchased by individuals “in line with the current order” will be transferred to international payment cards and used abroad without any restrictions.

It was previously reported that in January 2013, Uzbekistan banned the sale of cash to the population. For its purchase, individuals must obtain special conversion cards in international Visa or MasterCard Exchange systems in commercial banks of Uzbekistan.

Meanwhile, for exporters, regardless of the form of ownership, the requirement of mandatory sale of revenues in foreign currency has been abolished.

Moreover, terms for the issuance and repayment of loans in foreign currency, as well as the amount of commissions for the purchase and sale of foreign currency are determined by commercial banks independently, and the risks of banks related to these operations are related to business risk, and their management is in the competence of a commercial bank.

The practice of issuing licenses to commercial banks for conducting operations in foreign currency has been canceled. These operations are now carried out under a license giving the right to conduct banking activities.

Meanwhile, temporary procedure has been established until July 1, 2018, according to which the profit of business entities obtained as a result of revaluation of funds in foreign currency on accounts is not included in the taxable base.