Since May 21, the regulator has removed restrictions on the establishment of the cash exchange rate and when paying with the card abroad.
The removal of restrictions on the cash rate of buying and selling currencies of banks is necessary to limit speculation and maintain international reserves. This was reported by the press service of the National Bank.
The Central Bank states that the exchange rate against the dollar remains fixed – 29.25 hryvnia. Restrictions on setting the exchange rate of banks in the non-cash segment of the foreign exchange market remain unchanged. Banks must continue to conduct such operations to exceed the official exchange rate up to +1%.
“Thus, importers can buy foreign currency at a rate close to the selling rate of foreign currency by exporters. In case there is a shortage of foreign currency in the market, the NBU closes it by selling foreign currency. from international reserves, “the report said.
The second segment of the foreign exchange market is cash, where banks can sell cash currency only to the extent that they previously bought from the population. But, despite the restrictions of the NBU, now in the cash market they mainly buy currency for speculative profits, financing “gray” imports, which are not critical, as well as transferring savings to foreign money.
“None of these areas is a critical priority for supporting the economy during the war,” the NBU said. Therefore, the central bank does not spend hard international reserves to smooth changes in this market segment.
As reported, from May 21, the NBU allowed banks not to limit their rates for the sale of cash currency, and also removed restrictions on the rate at which banks write off hryvnia funds from card for cashless payments or withdraw funds from cards abroad.
The regulator explained the decision by saying that it was equal to the conditions for banks as opposed to exchangers, which would help increase the efficiency of the cash market and reduce exchange rate changes in it. In addition, the exchange rates for temporary stay abroad and the rates for the purchase of cash currency for citizens remaining in Ukraine will combine.
These measures also aim to limit “card tourism”. The NBU says that a significant part of transactions on hryvnia cards abroad is the withdrawal of money from ATMs. A significant portion of this cash goes back to Ukraine and goes to the illegal money market.
“That is, de facto difficult foreign exchange resources can be spent on non-priority needs during the war, which is now very important to reduce,” said the NBU.
They argue that the new market conditions will allow “to prevent unproductive withdrawal of capital and protect Ukraine’s international reserves”
It should be noted that the NBU decided to lift restrictions after the recent cash exchange rate of the dollar rose to 37 hryvnia.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.