Regulations Regarding Opening Foreign Currency Deposit Account, Settlement of Domestic Transactions, Currency Remittance and Exchange, Travelers Into and Out of Eritrea and Importers 1.Short Title
These Regulations may be citied as the "Regulations Regarding Opening foreign Currency Deposit Accounts, Settlement of Domestic Transactions, Currency Remittance and Exchange, Travelers Into and Out of Eritrea and Importers".
2. Opening Foreign Currency Deposit Accounts
(1) Government institutions authorized by the Ministry of Finance, as well as other clients of Eritrean banks may open foreign currency deposit accounts.
(2) Any person or institution who or which has opened a foreign currency deposit account may employ his or its foreign currency deposits for international transactions or other uses acceptable to the banks by presenting convincing evidence.
(3) Depositors who wish to withdraw foreign currency deposits for domestic use shall receive the Nakfa equivalent at the office rate of exchange.
(4) Persons or institutions residing outside Eritrea may operate their foreign currency accounts without any restrictions whatsoever.
(5) An Eritrean citizen who resides in Eritrea may, by opening within two months, foreign currency deposit accounts in Eritrean banks with foreign currency in his possession, use the said foreign currency through legal channels.
3. Settlement of Domestic Transactions
(1) Unless the Bank of Eritrea specially authorizes receipt in foreign currency, all transactions in Eritrea shall be settled in Nakfa . Any other settlement in violation of these Regulations shall be punishable under the Penal Code of Eritrea.
(2) Foreign currency obtained through the Bank of Eritrea's Special authorization shall be surrendered to it within the time frame prescribed by it.
4. Remittance and Exchange of Currencies
Remittance and exchange of currencies shall be conducted as follows:
(1) Remittances and exchange of currencies in Eritrea shall be effected through Eritrean banks and Himbol Financial Services. Other financial institutions may be authorized by the Bank of Eritrea as may be needed.
(2)Remittance payable to customers in Nakfa shall be exempt from service fees.
(3)Remittance into foreign currency accounts shall be subjected to service fees.
5. Travelers Into and Out of Eritrea
(1) Whereas there is no limit on the amount of foreign currency that travelers may bring into Eritrea , they shall, nevertheless, be required to complete declaration forms prepared by the Bank of Eritrea and submit the same to Customs Officers at the port of entry.
(2) Travelers entering into Eritrea may exchange money only at official authorized financial institutions. Failure to comply with these Regulations shall be punishable under the Penal Code of Eritrea.
(3) A traveler with unspent Nakfa left-over from foreign currency exchanged from authorized financial institutions may, when leaving Eritrea , change the same into foreign currency only at exit stations and at the buying exchange rates there.
6. Importers' Obligations
(1) Individuals or institutions importing goods into Eritrea shall complete forms prepared by the Bank of Eritrea.
(2) Goods for which the forms mentioned in sub-Article (1) hereof have not been completed shall not be allowed into the country.
7. Effective Date
These Regulations shall inter into force as of the date of their publication in the Gazette of Eritrean Laws.
Asmara , January 1, 2005
The Bank of Eritrea .
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