In early October Turkmenistan’s Foreign Trade Bank introduced new restrictions for Visa and Mastercard holders.
Previously, residents could withdraw cash overseas in US dollars using the government-established rate with a maximum limit of $200 a day. Starting from early October the limit was halved. Now no more than $100 a day or the equivalent in local currency can be withdrawn in cash.
Turkmen study-abroad students have been negatively affected by the newly-imposed restrictions.
“I am a student doing a course of study in Ukraine.I get money transfers to my bank cards.Previously I had been able to withdraw $200 a day whereas now the limit is reduced to $100 which can be withdrawn only in local currency”, — one of “Chronicles of Turkmenistan” readers said.
The Foreign Trade Bank did not inform its clients of the new requirements. Residents find out about them when they attempt to withdraw cash or pay for purchases which exceed $100.
There is no reply to telephone calls to the bank’s central offices. If a student’s family members contact the bank to clarify the situation they are informed that the client must appear in person.
Moreover, public sector employees are barred from going to the bank to credit their accounts during work hours from 9 a.m. to 6 p.m. At the same time, the bank cash departments taking deposits are open from 9:30 a.m. until 8 p.m.
Apart from bank cards, money transfers overseas to subsequently withdraw cash in dollars using the official rate can be made via Western Union.There are so many residents willing to use the WU services that the waiting list is 2 months.
When a person’s turn comes, he needs to appear in the bank, take a ticket and wait for a few hours in the queue.
The police are trying to secrete crowds of people and forces residents to enter the bank building by going to the yard or the neighbouring street to ensure photos of queues in front of financial institutions are not posted by the media outlets.
Similar restrictions for the amounts sent overseas apply in Western Union. The official representatives of the company who had contacted the editorial office of “Chronicles of Turkmenistan” earlier, had stated that the restrictions for money transfers are imposed by local banks and not by WU.
Let us recall that due to the crisis and a shortage of funds, Turkmenistan’s Central Bank prohibited the conversion of foreign currency for individuals effective January 2016.
The limited amounts of money can be exchanged overseas at the government-established rate (3,5 manats per dollar) by crediting VISA or Mastercard bank cards.
The amount which does not exceed 1000 manats and a month’s salary, however, may be deposited to the account once a month. In order to make a money transfer to their study-abroad students, parents must prove immediate relationship, provide a certificate from the educational establishments and their income statement.
Turkmenistan’s Central Bank had previously imposed additional restrictions for those willing to deposit the account which can be later used to withdraw cash in dollars overseas.