Includes how foreign exchange is managed and implications for U.S. business;
Last Published: 9/5/2018

Asian Development Bank’s (ADB) risk mitigation products are discussed in the Project Financing section.

ADB recognizes its borrowing governments’ foreign exchange restrictions and policies. However, it encourages domestic reforms in Asia to facilitate readiness for capital account convertibility and more exchange rate flexibility in the long-term, while maintaining the current exchange rate practices with capital controls in place (https://www.adb.org/sites/default/files/publication/28190/wp061.pdf).

In ADB-funded procurement where payments flow from borrowing country government to primary contractor and from primary contractor to subcontractor or supplier, capital flow to or from countries employing foreign exchange controls are subject to those controls.

In ADB’s institutional procurement, payments made by the ADB directly to consultants, contractors and suppliers for its own offices in headquarters and/or mission may be subject to the respective country where payment for procurement will transpire.
American firms considering ADB assistance to implement or expand their own projects in ADB’s developing member countries must ensure that foreign exchange controls of the host country will not prevent the host country from meeting foreign currency liabilities or prevent foreign entities from repatriating profits. ADB private sector assistance provides loans, equity investments, guarantees, among other financial vehicles.

To learn about foreign exchange controls in countries of interest to your firm see the “Foreign Exchange Controls” section of each country’s Country Commercial Guide (https://www.export.gov/ccg).
 

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