On 2 September 2017 the President of Uzbekistan signed a new Resolution (UP-5177) introducing changes to the foreign exchange regulations in Uzbekistan. Below is the summary of key changes.
New exchange rules
Starting from 5 September 2017:
- Legal entities registered in Uzbekistan may purchase foreign
currency from commercial banks without limitation for the purposes
of current international payments (such as, import of goods, works
and services), repatriation of profit, repayment of loans, business
trip expenses and other non-trade payments)
- As before, the exchange rate will be determined based on the offer and demand in the interbank forex trade sessions conducted in the Currency Exchange of Uzbekistan. The current exchange rates will be published in the website of the Currency Exchange (http://uzrvb.uz/)
- Mandatory sale of foreign currency proceeds is completely abolished
- Individuals – Uzbekistan residents may freely sell and buy foreign currency and use the funds abroad without limitations.
New rules on payment currency
On the territory of Uzbekistan:
- It is prohibited to make payments in foreign currency for goods (works and services), except the payments with international payment cards as per international practice
- Prices and rates for goods, works and services, as well as the minimum amount of the registered capital of companies will be determined exclusively in national currency
- Stamp duties, fees and other mandatory payments are collected only in national currency, except for consular fees.
More information to come
Please note that the President instructed the Government to draft, within one week, Government resolutions in order to mitigate the effects of liberalizing foreign exchange policy. We expect that further Government resolutions and Central Bank's instructions will clarify the new questions arising from this new Presidential Resolution.
Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com.