Press Release No 14 –
Reserve Bank of Fiji Announces Policy Changes to Exchange Controls
Press Release No. : 14/2009
Date : 14 April 2009
The Reserve Bank of Fiji has tightened exchange controls with immediate effect.
The Deputy Governor, Sada Reddy, said that this move is in line with one of the Bank’s core objectives of safeguarding our foreign reserves.
Some of these changes include suspension of facilities while application for other facilities by customers will require the approval of the Reserve Bank. Certain transactions will continue to be delegated but at lower limits.
Further clarification of these measures can be obtained from Commercial Banks, other Authorised Foreign Exchange Dealers and the Reserve Bank of Fiji.
ATTACHMENT 1
Reserve Bank of Fiji
Part 1 Exchange Control Restrictions effective from 14 April 2009 (for information of Commercial Banks)
Part A: Facilities Suspended
1. Offshore Investments
- These include investments by non-bank financial institutions, companies and individuals
- Suspension applies to both new applications and existing approvals not yet utilised
Part B: Facilities Not Delegated and Requiring RBF Permission
a) Emigration allowance (up to $200,000 per annum)
b) Profit remittances & withdrawal of investments
c) Payment for merchanted imports
d) Offset of foreign exchange earnings against foreign currency payables other than payment of imports already landed in Fiji
e) Foreign currency accounts – for local individuals and locally registered business entities
f) Insurance payments
g) Mortgage of Fiji registered assets to secure transactions held outside Fiji
h) Local Borrowing by Non-Resident Individuals and non – resident controlled companies
Part C: Facilities Delegated
1. Travel Allowance
- Limit of $5,000 per trip per traveller
2. Credit Card Facility
- Restricted to F$5,000 per month
- All amounts in excess of the new limit requires prior Reserve Bank permission
3. Debit Card Facility
- Monthly usage of F$5,000 per month.
4. Advance payments & pre-payment of imports
- New delegated limit of $20,000 per invoice
5. F$ Credit into External Account
- Limit for other funds from local sources to F$200 per month
- Limit for proceeds from sale of assets to $50,000 per sale
6. Offset of Foreign Exchange Earnings against Foreign Currency Bills Payable
- New delegated limit of F$100,000 per transaction for payment of imports that have arrived in Fiji
- Any amounts in excess of this limit requires prior Reserve Bank permission
7. Other Remittances (apart from those specified above)
- New delegated limit of F$50,000 per application for the following transactions:-
- – trade-related transactions – foreign currency loan repayments
- – office expenses and other foreign currency bills payable
- – education (if paid directly to the education institution)
- – medical expenses (if paid directly to the medical institution)
- – alimony and other payments required under court order[Exception: Payment for import of goods already received in Fiji is still fully delegated]
- Limit of F$500 per application per annum will continue to apply for the following transactions:
- gifts
- maintenance
- education allowance if not paid directly to the education institution
- medical expenses if not paid directly to the medical institution
- miscellaneous expenses/ transactions
- cancelled hotel bookings
- subscriptions
- wages to foreign crew
- All amounts in excess of the above limits require the prior permission of the Reserve Bank
Part D: Documentation Requirements
The above facilities will require documentation to be sighted for amounts above F$500 per transaction.
Part E: Forward Foreign Exchange Facility
All forward foreign exchange contracts of commercial banks to be operated within the current guidelines of matching sales against purchases.
Part F: Reporting Requirements
1. Foreign Exchange Transactions
- Commercial Banks to continue to report individual transactions above F$50,000 on a daily basis to the External Markets Unit of the Reserve Bank
- Commercial Banks to submit summary OET reports on a weekly basis to the Exchange Control Unit of the Reserve Bank
2. Local Borrowing & Guarantees
- Commercial banks to submit outstanding credits to non-resident individuals and non-resident controlled business entities on a quarterly basis to the Exchange Control Unit of the Reserve Bank.
3. Foreign Currency Accounts
- Commercial banks to continue to submit balances of accounts held by local individuals and locally registered business/entities on a quarterly basis to the Exchange Control Unit of the Reserve Bank.