Change to Exchange Control Limits

Introduction

1. The Reserve Bank of Fiji (RBF) regulates external currency movements under the Exchange Control Act 1950. Thus RBF consent is needed for all external remittances over trading bank delegated limits, including capital and dividend repatriation.

2. As of 2 April 2020, due to the continuing adverse impact of COVID19 on the Fiji economy, RBF has tightened exchange controls with immediate effect. This is to ensure that Fiji maintains adequate foreign reserves.

Changes

3. The changes include for certain facilities, the reduction in delegated limits, suspension and the introduction of new requirements. We summarise these in the table below:

Type of Payment Change
Credit Card Personal – delegated limit reduced to $5,000 a month

Corporate – delegated limit reduced to $10,000 a mont

Emigration Allowance Delegated limit reduced from $250,000 to $150,000 per family per annum
Loan Repayments Delegated limit for principal and interest reduced from $1,000,000 to $50,000 per amount due as scheduled
Offshore Investments Suspended
Dividend distributions to non-resident shareholders Now requires RBF approval. Previously this was delegated at $1,000,000/company per annu
Withdrawal of Investments through share or asset sales Now requires RBF approval. Previously this was delegated at $500,000/company per annum

Detailed information is available at https://www.rbf.gov.fj/getattachment/a3350391-a7e2-47a8-8892-b6464e38f82c/Part-2-Foreign-Currency-Payments-Effective-From-2-April-2020-(2).pdf?lang=en-US

4. RBF has recently introduced measures to limit face to face meetings and exchange control applications can be made online at RBF’s E-Service Portal available at https://eservice.rbf.gov.fj/. Applications that cannot be made through the portal can be emailed to ecservice@rbf.gov.fj.

Conclusion

5. Please note how these changes impact your operations. Please contact Richard Naidu or Glenis Yee for further information on this Alert.

 

Disclaimer

The information and opinions in this Legal Alert are for general information purposes only. They are not intended as specific legal or other professional advice and should not be relied upon or treated as a substitute for specific advice. Munro Leys can accept no responsibility for any loss arising from reliance on the general information contained in this Legal Alert.