Regulations governing currency regime improved

10-08-2023

10 August 2023, Baku: The Management Board of the Central Bank with its Resolution No 38/1 dated 28 July 2023 made changes to the ‘Regulations on currency operations of residents of the Republic of Azerbaijan in foreign currency and non-residents in national and foreign currencies’ (Regulations) to conduct targeted transfers of individuals, including foreign trade operations of businesses within a more favorable regime. The changes were entered to the State Register of Legal Acts of the Republic of Azerbaijan (https://e-qanun.az/framework/54860) and took effect on 9 August 2023.

The changes include: daily limits on amounts transferred abroad by individuals for personal purposes have been cancelled; daily limit has been set up to USD20000 (twenty thousand) irrespective the form of transfer (with or without an account); individuals now can pay for transportation and hotel (accommodation) expenses with respect to foreign visits not only for themselves, but also for other persons.

At the same time, taking into account feedback and proposals of market participants, the process of documentation during transfers on imported goods has been simplified and in trade intermediation operations intermediaries now can make up to 180 days advance payments to vendors by means of transfers. In this case, intermediaries should deliver irrevocable letters of credit or bank guarantees to designated banks to secure payments.

Moreover, taking into account international practice now resident individuals can encash up to USD10000 (ten thousand) equivalent within a calendar month abroad with payment cards issued in the Republic of Azerbaijan.

With these changes the Regulations have been adjusted to the amendments made to the Laws of the Republic of Azerbaijan ‘on Political parties’, ‘on Public-private partnership’, ‘on Prevention of legalization of criminally obtained property and the financing of terrorism’, and ‘on Targeted financial sanctions’, as well as the amendments made to the Tax Code.