Tightens mandatory foreign exchange conversion rules

The Central Bank of Belarus expanded a list of foreign currencies that exporters must convert into local roubles (Central Bank’s Resolution No. 350 of 25 August 2011, which enters into force after its official publication). The central bank dominates the official foreign exchange market where all exporters must convert 30 percent of their revenues denominated in certain foreign currencies into Belarus roubles. This requirement was introduced in 2006 to help the central bank replenish its foreign exchange reserves and ensure it had enough foreign currency to sell to key importers. Until now, 12 foreign currencies were subject to the mandatory conversion requirement, including the US dollar, the euro, the British pound, the yen, the Australian dollar, the Russian rouble and a number of Western European currencies. On 25 August 2011, the Central Bank announced that it had added 10 more currencies to the list, including the Chinese yuan, the Turkish lira, the Kazakh tenge and a number of Eastern European currencies.

• Type:

  • Treatment and operation (Capital transfer and FOREX)
  • Operation (Other)

• Industry:

  • Not industry specific

• Sources:

  • National Bank of Belarus, On Improving the Regime for Mandatory Dales of Currency, http://www.nbrb.by/press/?nId=746, 26 Aug 2011