Are Rules for Buying Foreign Currency Tightened?

Baku / 11.09.20 / Turan: Commercial banks have tightened the rules for the purchase of foreign currency by citizens. According to the observations of the Turan correspondent, several large banks, when buying foreign currency from a client, require an identity card and indication of the source of money and the purpose of the purchase of currency. Bank tellers explained that such requirements apply to individuals who wish to buy $ 300 or more. According to them, this is a requirement of the Central Bank.

Let us remind you that on June 20, the media reported about the tightening of the rules for buying foreign currency. But then it was about an amount of more than $ 500. According to publications in June, when buying 500 dollars or more, a citizen must provide information about the source of funds and the purpose of buying foreign currency. And when buying foreign currency more than the equivalent of 20 thousand manats, the operation falls under the control of the Financial Control Service, and the buyer must provide documents on the source of the money. Otherwise, he is obliged to pay 14% tax.

At the time, this decision drew criticism from independent experts, who said that such a decision contributed to the prosperity of the black market.

In response to this, the Association of Banks of Azerbaijan issued a denial, stating that there are no new rules and citizens can buy foreign currency without restrictions.

However, today's observation suggests that either the Association of Banks of Azerbaijan is misleading the public or commercial banks have independently introduced such rules. However, the independence of commercial banks in this matter seems unlikely.

Commenting on the situation for Turan, economist Natiq Jafarli noted that such restrictions are illegal. He stressed that neither the parliament nor the Cabinet of Ministers made such a decision.

“On March 10, 2020, the Central Bank made a decision that citizens, without specifying the source of funds, can purchase foreign currency in the equivalent of up to 20 thousand manats. Only if the amount exceeds 20 thousand manats, the bank has the right to demand to indicate the source of the money. But within a year, namely until March 2020, citizens can freely buy foreign currency up to 20 thousand manats,” he said.

Note that the corresponding request was sent to the Central Bank and several leading commercial banks. –71B-