Methods of Payment
Chad has a largely cash-based economy. Credit cards and personal or company checks will generally not be accepted as methods of payment. Some hotels and restaurants now accept international credit card payments. Traditional financial instruments, including letters of credit, collections, and funds transfers, are available within Chad or in conjunction with foreign banks. Short, medium, and long-term financing is available through commercial banks. For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide available at www.Export.gov/TradeFinanceGuide.
Banking Systems
Chad’s banking system is limited in size and available services. Financial instruments available to the private sector include letters of credit; short, medium, and long-term loans; foreign exchange operations; and some long-term savings instruments. There are currently ten commercial banks operating in Chad. Credit is available from commercial banks on market terms, which average 16 to 25 percent for short-term loans.
The banking sector is regulated by Commission de Banque de l ‘Afrique Centrale (COBAC), a regional banking agency. Chad is a member of the CFA (Communauté Financière Africaine) zone, as well as the Central African Monetary Union (CEMAC), which guarantees the convertibility of the Central African CFA Franc (FCFA) into Euro at a fixed rate of one Euro to 655.957 FCFA. Exchange rates with the USD vary according to the strength of the dollar versus the Euro. The average exchange rate in 2019 was 592.73 FCFA per U.S. dollar.
Foreign Exchange Controls
There are no restrictions on the transfer of funds into Chad. Several restrictions apply to money departing Chad. Individuals transferring more than $1,000 out of Chad should provide documentation of the source and purpose of the transfer to the bank. Transactions of $10, 000 or more for individuals and $50, 000 or more for companies are automatically notified to the COBAC. Additional requirements exist for companies transferring more than $800,000 out of the country. Approvals are routine, although the Central Bank has occasionally temporarily restricted capital outflows. During periods of low oil prices, there may be high demand for USD and foreign currency in the country.
New legislation further restricting foreign exchange holdings and cash outflows set for implementation in 2019 was delayed in 2020. Holding large sums of foreign currency in Chad raises risks of government appropriate through legal procedures.
U.S. Banks & Local Correspondent Banks
There are no U.S. banks currently operating in Chad. Several local banks have correspondent banks in the U.S. and Europe and can facilitate international transfers. The following banks have Society for Worldwide Interbank Financial Telecommunication (SWIFT) identification codes and have arrangements with correspondent banks:
• Société Générale des Banques (former BTCD) has arrangements with Société Générale of New York; Standard Chartered Bank of New York; the Bank of New York.
• Banque Commerciale du Chari has arrangements with Arab Intercontinental Bank (French: Banque Intercontinentale Arabe), Paris; Union des Banques Arabes et Françaises, Paris.
• Ecobank Tchad has arrangements with NATXIS, Paris; Citibank, New York.
• Orabank (former Financial Bank Tchad) has arrangements with NATXIS, Paris; Credit Agricole, Paris; ING, Belgium, UBS, Barclays London, Bank of Montreal.
• Commercial Bank Tchad, former Banque de Développement du Tchad (BDT) has arrangements with Citibank, New York; the United Bank for Africa (UBA).
• Banque Agricole et Commerciale has arrangements with Citibank, New York; the United Bank for Africa (UBA).
• Banque Sahelo Saharienne pour L’investissement et le Commerce (Tchad) S.A. has arrangements with ING Belgium SA; Commerzbank, Germany; BNP Paribas, Switzerland; British Arab Commercial Bank Ltd.
• United Bank for Africa (UBA) Tchad has arrangements with NATXIS, Paris; United Bank for Africa (UBA), New York, London and Paris.
Banque de l’Habitat du Tchad started operations in 2017. It provides traditional banking services with a focus on home loans. It is backed by the Government of Chad (50 percent), the national oil company (SHT, Société des Hydrocarbures Tchad) (25 percent), and the national social security agency (CNPS, Caisse Nationale de Prévoyance Sociale) (25 percent).