The Central Bank has deployed several amendments to the regulations governing foreign exchange operations. The resolution, approved by the regulator's board on March 30, was registered by the Ministry of Justice on April 22 with immediate effect.
Under the new rules, individuals - regardless of their nationality - now enjoy greater flexibility, as they are permitted to make non-commercial currency transfers to one another through bank accounts. Additionally, foreign nationals are now allowed to conduct domestic foreign exchange transactions related to capital contributions (investing in a company's charter fund), charity donations, and inheritance matters.
The updates also provide significant administrative relief for businesses. Specifically, legal entities are no longer required to submit excessive documentation when purchasing foreign currency to pay out securities; a simple confirmation of the security issuance is now sufficient.
Furthermore, the process for foreign investors to repatriate funds has been streamlined. Investors can now purchase foreign currency to withdraw proceeds from stock market sales, dividend payments, interest (coupons), or bond redemptions based solely on a formal application, making the procedure as straightforward as possible.
An amendment to the clause 24 now allows clients to make "technical corrections" to foreign currency purchase applications if errors are found. Previously, such applications could be flatly rejected by the bank without the option for immediate rectification.
Special attention has been given to the development of financial instruments. It is now established that commercial banks and the Central Bank may conduct currency swaps and derivative transactions based on International Swaps and Derivatives Association (ISDA) standards or the specific rules of the currency exchange.
The procedure for withdrawing cash in foreign currency has also been clarified:
- individuals may withdraw cash without restrictions, up to the total balance available in their account.
- legal entities may withdraw cash to return foreign currency capital originally contributed to their charter fund by individuals, or for expenses related to employees traveling on official business outside of Uzbekistan.
- foreign diplomatic missions may withdraw cash for other clearly defined purposes, provided they submit an official letter of request to the bank.
- a new provision allows for cash currency disbursements to foreign citizens for VAT refunds (Tax Free), in accordance with established legal procedures.
A new rule prohibits banks from reissuing banknotes that show even minor signs of wear or damage, such as small punctures, stains, or scuffs. Such bills must be removed from circulation for subsequent collection and replacement rather than being handed out to other customers.
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