Ukrainian banks can sell cash currency to the public without restrictions from December 1.
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The National Bank abolishes all restrictions on the sale of cash currency to the population. This will minimize the difference between cash and non-cash rates, which will subsequently increase the stability of the foreign exchange market, the regulator believes.
We carefully weigh the balance of risks and benefits, the positive contribution to strengthening the country’s defense capability, economic recovery and maintaining macro-financial stability, and we study the urgent needs of citizens. When we see room for decisions, we make them, adhering to our Strategy for easing foreign exchange restrictions, moving to greater exchange rate flexibility and returning to inflation targeting,” Andriy Pyshny, Chairman of the NBU Board, wrote on this occasion.
The mitigation, as well as other clarifying changes, were made by resolution of the NBU board of 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.” It came into force on December 1, 2023.
The main provisions of this resolution are:
- The NBU allowed the Export Credit Agency (ECA) to transfer funds abroad to reimburse/compensate expenses under insurance and reinsurance contracts concluded with foreign insurance (reinsurance) companies, as well as to pay ECA expenses associated with such operations.
- It is possible to use the ECA letter of credit form of payment.
- The list of services for which payment is allowed to be made by cross-border transfers has been expanded to citizens, including combatants who, as a result of Russia’s armed aggression against Ukraine, need treatment or restoration of health outside of Ukraine. The corresponding list has added related additional services related to the process of treatment/rehabilitation in medical institutions of foreign countries, which are an integral part of it.
- Payment for services necessary to create appropriate conditions for students to study abroad is allowed. In particular: payment for accommodation, obtaining a visa for the period of study, transfers from the hostel to educational offices, food, insurance, medical services in case of emergency medical care.
Source: Racurs
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