National Bank lifted restrictions on the foreign exchange market

The national Bank took a series of currency restrictions for individuals and legal entities, leaving the sale of 50% of earnings of exporters.

The national Bank of Ukraine (NBU) has removed some of the restrictions on the foreign exchange market for individuals and legal entities.

As reported the press service of the NBU, the regulator loosened restrictions, “the mitigation which will not lead to destabilization of the situation on the interbank and cash segments of the foreign exchange market.” This became possible due to prolonged favorable situation on the foreign exchange market and the balance of inflation risks the national Bank noted.

The NBU lifted the ban on the purchase of foreign currency in the client’s own funds in the accounts in the amount exceeding $100 thousand in equivalent. Previously, under the condition exceeding the specified amount, the customer had to fulfill obligations due to own foreign currency.

Also removed restrictions for natural persons for the transfer of funds outside Ukraine for non-commercial transactions. Previously, they were limited to the amount not more than UAH 150 thousand per month (with the exception of some cases).

In addition, the NBU allowed banks to exchange foreign currency without restrictions on the group of the Classifier of foreign currencies and Bank metals on the interbank and foreign exchange market. Still exchange transactions are carried out exclusively within the same group of the Classifier, with the exception of operations carried out: in the interbank and foreign exchange markets commitments on import contracts and on foreign exchange markets to purchase foreign currencies of the 1st group of the Classifier of foreign currency other groups.

“Removing these restrictions will allow banks and their customers flexibly manage their liquidity and have a positive impact on the regulation of foreign exchange position of banks,” – according to the NBU.

Changes approved by the NBU Board resolution No. 44 dated may 30, 2017. Removing the restriction for individuals on the transfer of funds outside Ukraine for non-trading operations takes effect on 12 June 2017. Other changes approved by this document are effective from 31 may 2017.

“Given the need to further support the stability of the currency market of Ukraine, the national Bank decided to keep the requirement for mandatory sale of foreign currency proceeds from abroad in favor of legal entities at the level of 50%,” said the NBU.

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