Foreign exchange operations

• Foreign exchange operations

Foreign exchange operations

Foreign  exchange system,  or foreign exchange regime, is a part of the economic system. Foreign exchange system is highly linked with foreign trade system, or regime, through a series of measures governing economic relations within a country, or relations of its economy with the economies of other countries. These measures govern the payment transactions, the disposal of foreign exchange, capital movements, transfer of profits etc.  The type of a foreign exchange and trade system depends on the type of economic system of a country. If the national economy is more developed and has a developed economic relations with foreign countries, in so far its foreign exchange and foreign trade system are more liberal.

Foreign exchange operations in the Republic of Serbia are governed by the Law on Foreign Exchange  Operations (“Official Gazette of the Republic of Serbia” No. 62/06 and 31/11).

This Law governs:

1. payments, collection of payments and transfers between residents and non-residents in foreign means of payment and in dinars;
2. payments, collections and transfers between residents in foreign means of payment;
3. purchase and sale of means of payment between residents and non-residents, as well as the purchase and sale of foreign means of payment between residents;
4. unilateral transfers of means of payment from and into the Republic of Serbia (hereinafter: the Republic) which do not have the characteristics of transactions performed between residents and non-residents;
5. current and deposit accounts of residents abroad and of residents and of non-residents in the Republic;
6. credit operations in foreign exchange in the Republic between banks and residents in foreign exchange and between banks and non-residents in dinars, as well as  foreign credit operations.