Sao Tome and Principe - Conversion and Transfer Policies STP - Conversion Policies
Foreign Exchange
The Central Bank of STP (BCSTP) supervises the national financial system and defines monetary and exchange rate policies in the country. Among other responsibilities, the BCSTP sells hard currency and establishes indicative interest rates. There is no difficulty in obtaining foreign exchange. The dobra (denoted by the acronym "STD") is the country’s national currency. As of April 2016, one U.S. dollar was equivalent to about STD 22,000.
In July 2009, STP and Portugal signed an economic cooperation agreement with the objective of fixing the STD to the Euro rather than a weighted basket of currencies. As a result, the STD is pegged to the Euro at an exchange rate of 1 Euro equal to STD 24,500.00. This anchorage offers credible parity, minimizes the monetary instability costs, and provides better credibility for the exchange rate and monetary policy.
Remittance Policies
Repatriation of capital is possible with prior authorization. Transfer of profits outside of STP is also allowed after the deductions for legal and statutory reserves and the payment of existing taxes. The government encourages reinvestments with associated reductions in income taxes.
STP is a member of the Inter-Governmental Action Group against Money Laundering in West Africa, an FATF-style regional body.