Belarus Introduces 30% Tax on Bank Card Transactions Buying Foreign Currency

According to an announcement on the website of the central bank of Belarus, every resident who pays for goods or services located abroad through his local VISA or MasterCard denominated in Belarusian ruble will be taxed 30%.

For brokers accepting customers from Belarus and their clients, this means that every incoming transaction though their debit or credit card denominated in the local Belarusian ruble, will have to be charged 30% on top of existing transaction costs for the sum to be credited to the client’s trading account.

Clients who deposit funds from their existing foreign currency accounts will not have to pay any additional levies. From a conversation with the Belarus Central Bank's spokesperson, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates' reporters learned that the banning of OTC forex transactions in the country has not been under consideration.

Late last week, dealing on the over-the-counter (OTC) foreign exchange market in Belarus was banned until the 1st of January, 2017, with the exception of deals involving the National Bank of Belarus (the Belarus central bank).

The additional levy on purchasing foreign currency was active from the 20th of December, including purchases of foreign currency at banks, foreign exchange bureaus, through card transactions, card Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term abroad and any internet purchases.

The move was triggered by the spread of the Russian ruble collapse to the closely interlinked Belarusian economy. The result is loss of credibility in the local currency which hasn’t been liquidated with the introduction of the 30% levy.

Quite the opposite - panicking Belarusians went on a buying spree, buying out foreign made goods from local stores after Friday’s announcement and before the introduction of the 30% levy.

Some weren’t deterred by the huge penalty on the transaction and went to the foreign exchange desks anyway. The efforts made by the central bank might have actually contributed to an exacerbated panic.