NBU allows banks and exchange offices to sell cash currency to population without restrictions

The National Bank has allowed banks and exchange offices to sell cash currency to the population without restrictions.

This is stated in the NBU message, Ukrainian News Agency reports.

So, from December 1, 2023:

- all restrictions for banks and non-bank financial institutions on the volume of possible sale of cash foreign currency to the population are abolished. According to NBU estimates, this will help to minimize the difference between cash and non-cash rates and, as a result, stabilize exchange expectations and improve the stability of the foreign exchange market;

- the Export Credit Agency (ECA) is allowed to transfer abroad funds for reimbursement/compensation of expenses under insurance and reinsurance contracts concluded with foreign insurance (reinsurance) companies, as well as for payment of ECA expenses related to the implementation of such operations. This is done to ensure the possibility of risk insurance during the armed aggression of the russian federation against Ukraine in order to ensure the safety of shipping, promote the stability of sea transportation, ensure the sustainable export of Ukrainian products through the ports of Ukraine. The changes also provide for the possibility of the ECA using the letter of credit form of settlements;

- the list of services is expanded, for payment of which it is allowed to carry out cross-border transfers to citizens, including participants in hostilities that, as a result of russia's armed aggression against Ukraine, require treatment or restoration of health outside of Ukraine. The associated supplementary services related to the treatment/rehabilitation process in medical institutions of foreign States, which are an integral part of it, have been added to the relevant list;

- it is allowed to pay for services necessary to create proper conditions for students to study abroad. In particular: payment for accommodation, obtaining a visa for the period of study, transfers from a hostel to training offices, food, insurance, medical services in case of emergency medical care.

These mitigations, as well as other clarifying changes, are subject to Resolution of the Board of the National Bank of Ukraine dated November 30, 2023 No. 155 "On Amendments to the Resolution of the Board of the National Bank of Ukraine dated February 24, 2022 No. 18," effective from December 1, 2023.

As Ukrainian News Agency earlier reported, the National Bank of Ukraine has relaxed a number of currency restrictions in order to improve the work of the cash segment of the foreign exchange market.

So, from September 16, during the calculation of the amount of cash foreign currency that a bank or a non-bank financial institution has the opportunity to sell on the foreign exchange market, the balances of cash foreign currency that was accounted for in the cash desk of these institutions as of April 13, 2022 will be taken into account.

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