National Bank cancels restrictions on trust purchase of foreign currency by legal entities and individual entrepreneurs, according to a press release of the regulator.

The corresponding norm is preserved in the decreeing of the National Bank Board № 538 dated 28 December 2017, which enters into force three months after its official publication.

The Decree approved a new revision of the instruction on the procedure of foreign exchange transactions, which provides the establishment of an identical order of foreign exchange operations carried out by legal entities and individual entrepreneurs in the domestic market.

In particular, legal entities-residents will be able to buy the currency as determined. Terms of use are also not set.

A similar regulation of the foreign exchange transactions will be set for individual entrepreneurs.

In accordance with the new regulations when purchasing foreign currency legal entities and individual entrepreneurs will be required to specify the use of foreign currency. However, specifying the codebase will be exclusively statistical and will not restrict the use of the purchased currency on other fronts.

Cancellation of restrictions on the target currency purchase would lead to greater freedom of entrepreneurial activity and will reduce the administrative costs of managing subjects associated with the need to appeal to the National Bank to receive permission to purchase of foreign currency for purposes not provided for in legislation, the extension of the shelf life and changing the target use of the purchased foreign currency. The decision will also create conditions for the development of future market using derivatives (forwards, currency futures, etc.), said the regulator.

In addition, the restrictions on currency purchase target for legal entities will be an additional step towards harmonization of monetary legislation within the EEMA and form the prerequisites for the cancellation of other restrictions and encumbrances established by the monetary law of Belarus, according to the NBB.

Our lawyers will advise you on all matters relating to the currency legislation of the Republic of Belarus.