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The document ceased to be valid since  June 21, 2017 according to article 6 of the Law of the Kyrgyz Republic of  December 16, 2016 No. 207

LAW OF THE KYRGYZ REPUBLIC

of June 5, 1995 No. 6-1

About foreign currency transactions

(as amended on 26-04-2013)

This Law fixes powers of National Bank of the Kyrgyz Republic (further Bank of Kyrgyzstan) in carrying out single monetarist policies, determines procedure of foreign currency transactions, establishes market mechanism of currency exchange, proclaims freedoms of movement of foreign currency and securities expressed in it from abroad and abroad.

Chapter 1. General provisions

Article 1. Basic concepts

In this Law the used concepts mean the following:

"Authorized banks" are the banks which obtained the license of Bank of Kyrgyzstan for the right of carrying out foreign currency transactions.

"The exchange bureau" is the specially equipped Item created by the legal entity for carrying out the exchange transactions with cash foreign currency performed according to the license of Bank of Kyrgyzstan.

"Instrument of payment" is cash (banknotes, coins, travel checks and other possible instruments of payment), and also payment non-cash (the payment orders, letters of credit, payment requirements orders and other possible instruments of payment accepted in the international banking practice).

"The current payments" are payments for commodity import and services, including interest payments on loans and dividends on deposits.

"The current receipts" are payments for commodity export and services, including interest payments on loans and dividends on deposits.

"The translations of the capital" is import and capital export, including transactions on deposits, loans and other investments, and also all transactions with foreign currency and securities expressed in it.

"The spot - the exchange rate" means the exchange rate at which the foreign currency is on sale authorized bank for purchase, immediate or possible within two days, and also the calculations perfromed by immediate payment by cash or other means during the same term.

"Residents":

1) the physical persons who are constantly living in the Kyrgyz Republic, including temporarily being abroad. The foreign physical persons who are constantly living in the Kyrgyz Republic become residents after provision of the notification on immigration in relevant organs;

2) the legal entities created according to the legislation of the Kyrgyz Republic with the location in the Kyrgyz Republic;

3) the diplomatic and other official representations of the Kyrgyz Republic which are abroad;

4) branches and representations of foreign legal entities created according to the legislation of the Kyrgyz Republic with the location in the Kyrgyz Republic;

5) branches and representations of legal entities of the Kyrgyz Republic which are abroad.

"Nonresidents" are the persons which are not residents.

"Means" are money on accounts and in deposits in banks.

"Currency values" - gold and other precious metals, and also other means which owner can replace with them currency.

Article 2. Legislation on foreign currency transactions

The legislation on foreign currency transactions consists of this Law and regulations of Bank of Kyrgyzstan adopted according to the current legislation.

Article 3. Publication of regulations of Bank of Kyrgyzstan concerning regulation of foreign currency transactions

The bank of Kyrgyzstan publishes in mass media the regulations adopted by it concerning regulation of foreign currency transactions.

Chapter 2. Movement and currency exchange

Article 4. Movement of foreign currency

Movement of foreign currency is not limited from abroad and abroad.

Import and currency export are not subject to any restrictions on condition of its declaring in Items of customs control.

Article 5. Exchange of national and foreign currency

Transactions on exchange between national and foreign currency are not limited.

Article 6. Movement of currency values

Movement of the currency values which are not currency with entering of necessary data in the customs declaration (lists), are performed according to the customs legislation of the Kyrgyz Republic.

Chapter 3. Organization of exchange transactions

Article 7. Exchange rate

The official exchange rate is determined and appears Bank of Kyrgyzstan based on market spot - exchange and other market rates.

The spot-exchange and other market exchange rates freely make a reservation between the seller and the buyer.

Authorized banks provide to Bank of Kyrgyzstan all necessary information on foreign currency transaction on the form established by Bank of Kyrgyzstan.

Article 8. Authorized banks

Authorized banks perform exchange transactions in foreign currency based on the license granted by Bank of Kyrgyzstan.

Authorized banks, performing operations of the clients, provide compliance to their this Law.

Authorized banks freely sell and buy foreign currency in the Kyrgyz Republic and abroad.

The foreign currency transactions performed in the territory of the Kyrgyz Republic are performed through authorized banks, except as specified, of the stipulated in Article 12 these Laws.

Article 9. Purchase and sale of foreign currency

Residents and nonresidents have the right to buy and sell foreign currency without restrictions and unreasonable delays in authorized banks and exchange bureaus.

Persons performing purchase or sale of foreign currency shall show the identity document if the amount exceeds the threshold sum determined by the Law of the Kyrgyz Republic "About counteraction to financing of terrorism and to legalization (washing) of income gained in the criminal way".

Article 10. Sale and purchase of foreign currency by the Government of the Kyrgyz Republic

The bank of Kyrgyzstan has the right to buy convertible currency and to sell it to the Government of the Kyrgyz Republic at the market rate estimated according to paragraph 2 of article 7 of this Law.

Article 11. Role of Bank of Kyrgyzstan in the foreign exchange markets

The bank of Kyrgyzstan performs currency transactions for the purpose of management of gold and foreign exchange reserves, and also for the purpose of protection of interests of the Kyrgyz Republic.

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