NBU Weakens And Clarifies A Number Of Currency Restrictions

The National Bank loosened and specified a number of currency restrictions.

The NBU has said this in a statement, Ukrainian News Agency reports.

The National Bank of Ukraine is further clarifying currency restrictions to minimize the possibility of an unproductive outflow of capital from the country and enable citizens to satisfy their own needs, and the economy to recover.

So, from May 10, 2022, a number of changes come into force, in particular, concerning the following issues:

- foreign investors are allowed to transfer abroad funds that will be received after April 1, 2023 in connection with the payment of redemption or payment of income on domestic government bonds of Ukraine in accordance with the terms of their placement. The practical implementation of this rule will help increase the interest of non-residents in buying government bonds, including with funds received from planned repayments and income payments. Also, the National Bank allowed making transfers abroad for the purpose of paying alimony;

- settlements abroad for the purpose of buying securities, shares, bonds and paying for brokerage services for these transactions, carried out using cards issued by Ukrainian banks, are temporarily prohibited. The relevant changes are aimed at limiting unproductive capital outflows and protecting Ukraine's international reserves. The changes do not apply to the use of payment cards abroad and in Ukraine for settlements in order to pay for the cost of any other goods, works and services. They can continue to be carried out without restrictions;

- The National Bank stops conducting daily non-cash transactions for the purchase and sale of currency in euros and will conduct such operations exclusively in US dollars. They will be carried out both on the terms “tod” (in the usual mode) and on the terms “tom” (only to meet the needs of the defense).

Prior to the start of Russia's full-scale attack on Ukraine, the central bank conducted transactions for the purchase and sale of foreign currency with banks only in dollars.

It is also determined that the bank will be able to conduct transactions with the National Bank for the purchase and sale of foreign currency if, within 10 calendar days preceding the day of applying to the NBU, it has never violated the limit of the total long open currency position.

In addition, the National Bank regulated a number of other issues, in particular, allowed citizens to sell banking metals with or without physical delivery to banks.

As Ukrainian News Agency earlier reported, since April 14, the National Bank has allowed banks to sell cash foreign currency to the population.