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LEARN ABOUT THE PROCESS AND REGULATIONS FOR TRADING IN THE ORGANIZED FOREIGN EXCHANGE MARKET.
[/vc_column_text][us_separator][vc_column_text]Currency in our country is one of the prevailing income and with a very significant percentage for the Honduran economy, we could say that currency is considered a type of monetary unit of a foreign country authorized by the Central Bank of Honduras to be traded in the organized Foreign Exchange Market. Currency is a currency of good acceptance and easy exchange in different markets, therefore if we propose to exemplify the term, we can interpret the following: If someone from abroad sends us dollars; this currency is considered a Currency or vehicular currency par excellence, this could be a remittance for example, however to clarify the terms, we cannot define a currency as a Remittance, since what makes it a Currency is the currency of a foreign country. The objective of the Regulations for Trading in the Organized Foreign Exchange Market is to apply to foreign currency purchase and sale transactions carried out by the Central Bank and its exchange agents, as well as those carried out by the public sector. This regulation establishes a mechanism for daily reporting to exchange agents of the reference exchange rate, which must be applied to all banking transactions. The Central Bank of Honduras is committed to updating this information on the Central Bank of Honduras website. All banks and exchange agents must maintain this exchange rate updated according to the exchange rate reflected on the Central Bank of Honduras website. According to this regulation, there is a mechanism for applying the sale of foreign currency to companies engaged in the following activities:
- Electric Power Generators
- Oil importers
- And others that merit it.
The mechanism for the aforementioned companies to be able to purchase these currencies for the first time must meet the following requirements:
- Deed of Incorporation of a Company and its amendments.
- Current numerical Tax Registration (RTN).
- Current operating permit
- Any document that the BCH deems relevant to submit.
Once the company meets the aforementioned requirements, the corresponding process for selling foreign currency will be initiated. Foreign currency purchases made by foreign exchange agents from their private sector clients must be sold to the Central Bank of Honduras at the current rate on the same day of purchase or, failing that, the following day. Remittances received from abroad may be paid in foreign or local currency at the current exchange rate as updated on the BCH website. If you are part of or a representative of an institution and are interested in applying for authorization to act as a foreign exchange agent, you must submit the following documentation:
- Request addressed to the BCH Board of Directors
- Photocopy of the duly registered Deed of Partnership
- Current numerical National Tax Registry (RTN)
- Certification from the National Banking and Insurance Commission to operate as an institution in the national financial system.
My dear reader, would you like to know more information like this? You can write to us at hsalgado@lexincorp.com or infohn@lexincorp.com. We will be happy to answer your call, since we are a firm that provides comprehensive legal advice to its clients with the commitment to provide continuous improvement in the quality of our services.
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