Foreign Exchange Transactions Performed by Residents on the Domestic Market

Residents are prohibited from using foreign currencies, securities denominated in foreign currencies and payment documents in foreign currencies for settlements in Belarus.

This provision does not apply to the following cases: 

- For legal entities and individual entrepreneurs – marshalling of term financing for the national and local budgets and payments from these budgets; 

- For individual citizens – extension and repayment of loans and provision of grants as well as safekeeping and return of foreign exchange.

In addition, residents can accept foreign currency from other residents as payment for insurance services in cases set forth in applicable legislation. Foreign currency can also be used to settle liabilities of a forwarding agent to a foreign transportation company. 

Foreign Exchange Transactions Performed by Non-Residents on the Domestic Market

The Law On Foreign Exchange Regulation and Control  imposes no restrictions on settlements between non-residents in either foreign currency or Belarusian roubles which employ accounts opened Belarusian banks and non-bank institutions provided these accounts can be used for such transactions.

Any currency quoted by the National Bank  can be used for such settlements. 

No limitations are imposed on transactions involving securities denominated either in Belarusian roubles or in a foreign currency between non-residents provided these transactions are performed in Belarus.

Non-residents can execute cash-based foreign exchange transactions only in exceptional cases set forth in the National Bank’s Instruction On the procedure for Executing Cash-Based Foreign Exchange Transactions.

Exchange Transactions

Only banks and licensed non-bank financial institutions are authorized to exchange foreign currency in Belarus.

Foreign exchange can be sold, purchased or converted at the Belarusian Currency Stock Exchange and the over-the-counter foreign exchange market.

Mandatory Sale of a Portion of Foreign Exchange Revenues

To stabilize the financial market, the Belarusian authorities have obliged economic entities to sell a portion of their foreign exchange revenues.

Presidential Decree N452 dated 17 July 2006 On the Mandatory Sale of Foreign Exchange regulates the procedure and the volume of such sales. This document stipulates that legal entities and individual entrepreneurs resident in Belarus are obliged to sell 30% of their foreign exchange revenues at the Belarusian Currency Stock Exchange within seven days from the date the funds were deposited at their bank accounts.

There are certain exceptions to this rule.

The mandatory sale provision does not apply to Belarusian banks, non-bank financial institutions and insurance companies.

Foreign exchange revenues used to settle debts and pay interest on loans extended by non-residents or Belarusian banks to acquire lease objects or fixed assets are also exempt from this requirement.

The mandatory sale provision does not affect revenues which are paid to a bank or a non-bank financial institution within seven days under a factoring contract or which are used to purchase government securities or foreign currency-denominated securities issued by the National Bank, provided these securities will be held for at least 30 days.