The Verkhovna Rada has allowed the National Agency of Ukraine for Finding, Tracing and Management of Assets Derived from Corruption and Other Crimes (Asset Recovery and Management Agency, ARMA) to manage funds in foreign currency.
299 parliamentarians voted for bill No. 10397 as a whole with the minimum required 226, Ukrainian News Agency reports.
The Law of Ukraine dated May 31, 2022, No. 2293-IX, amended Section V "Final Provisions" of the Law of Ukraine "On the National Agency of Ukraine for Finding, Tracing and Management of Assets Derived from Corruption and Other Crimes" and provides for the possibility of acquiring domestic state loan bonds with funds in national currency placed on ARMA deposit accounts.
Bill No. 10397 expands the introduced practice and provides the opportunity to purchase domestic state loan bonds with foreign currency funds placed on ARMA deposit accounts.
The yield on such bonds significantly exceeds the yield on interest rates on foreign exchange deposits.
As Ukrainian News Agency earlier reported, from April 20, the norms governing the procedure for granting separate permits for foreign exchange transactions by the National Bank of Ukraine in case of receipt of a corresponding petition from the Government of Ukraine are updated.
The amendments were made in order to coordinate the regulatory acts of the National Bank with Law No. 3624-IX "On Amendments to Certain Laws of Ukraine on the Settlement of Certain Issues of the Activities of the Deposit Guarantee Fund, the National Bank of Ukraine and the National Commission on Securities and Stock Market," which entered into force on April 19, 2024.
In addition, the NBU assumed its respective obligations in accordance with the provisions of the Memorandum on Economic and Financial Policy with the International Monetary Fund.
Thus, if earlier the appeal of the Cabinet of Ministers was the key basis for the adoption by the National Bank of a separate decision on granting permission for a foreign exchange transaction, then from April 20, the NBU will also largely focus on its own analysis of the possible consequences of such decisions.
The National Bank, in particular, will take into account whether the granting of separate permits for foreign exchange transactions is coordinated with:
- objectives of macroeconomic, financial and external stability;
- a strategy for easing currency restrictions, moving to greater flexibility of the exchange rate and returning to inflation targeting.
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