07.08.2006.
Pursuant to the new Law on Foreign Exchange Operations, the National Bank of Serbia has been authorized to issue appropriate secondary legislation for the implementation of that law. Although the legally envisaged period for this was 6 months, the National Bank of Serbia has issued several decisions the application of which begins as of today, 7 August. These are: Decision on Requirements and Procedures in the Foreign Exchange Market Operations, Decision on Requirements for the Opening of Foreign Currency Accounts to Residents and Manner of Maintaining Such Accounts, Decision on the Conditions and Manner of Performing Exchange Transactions with respective Guidelines, Decision on the Supervision Procedure Applied to Exchange Transactions and Decision on Conditions and Manner of Effecting Personal and Physical Transfers To and From Abroad.
The decision governing exchange transactions envisages, inter alia, the possibility for authorized exchange dealers to enter into agreement with one single bank, NBS, several banks or both with NBS and more banks, which is in line with the new measures allowing further liberalization of the exchange transactions and their re-direction from NBS to commercial banks. Another novelty is that the exchange dealer freely sets its own daily rates of exchange for foreign cash at the onset of the business day, with the obligation to apply such rates ranging from the selling to buying rate as set out in its exchange rate list. Apart from specifying the manner in which exchange transactions are to be performed by NBS, banks and authorized dealers, the decision also envisages the measures aimed at protection of natural persons. To that end, maximum commission charged by authorized dealers on the purchase of foreign cash has been limited to 3%, and only for valid banknotes that are currently in circulation. The decision prescribes obligations that are to be met by all dealers, especially authorized dealers, which implies the obligation to display in a visible place the sign "Exchange Office", to issue a receipt on the purchase and/or sale to natural persons, to display their own exchange rate list and commission charged for the services rendered, and to announce on the advertisement board the minimum and/or maximum amounts for bought and/or sold foreign cash.
The National Bank of Serbia also issued a special decision regulating personal transfer of means of payment to and from Serbia. These transfers are effected by natural persons via banks and they include gifts, assistance, inheritance, annuities, settlement of the debt of immigrants and transfer of their funds to abroad, as well as physical transfers which include the taking in and taking out of dinars, foreign cash, commemorative coins, and dinars for numismatic or collecting purposes. This decision also regulates the transfer of means of payment to abroad for the purpose of supporting family members living abroad. In future, a resident – natural persons will be able to take out of the country foreign cash, cheques or dinars the total amount of which is not more than EUR 5,000 and/or equivalent value in another foreign currency. Up to now the limit was EUR 2,000.
Decision on Requirements and Procedures in the Foreign Exchange Market Operations prescribes the manner of effecting the purchase and sale of foreign currencies and foreign cash between participants in the foreign exchange market, as well as the manner of setting the official middle exchange rate of the dinar against other currencies. One of the novelties is the rescheduling of NBS organized IFEM session to 14.30 which will pave the way for the bulk of trade in the foreign exchange market to be performed before the IFEM meeting. The purpose of this shift is to facilitate gradual reduction of the NBS participation in that session which is in accordance with the NBS decision to further withdraw from the foreign exchange market.
The above decisions will be published on the NBS website.
Press Release from Governor’s Cabinet
