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Ukrainian central bank has further loosened temporary restrictions

On September 14, 2016, the National Bank of Ukraine adopted Resolutions No. 386 “On Regulation of the Situation on Monetary and Currency Markets of Ukraine”, which further softened the currency anti-crisis restrictions from 2014. This Resolution becomes effective today on September 15, 2016, and will be in effect until December 15, 2016. The Regulator states in this regard, that these loosening measures will not affect volatility on the interbank foreign exchange market.

Firstly, bank clients can now receive cash in foreign currency or bank metal from their current and deposit accounts in the amount of maximum UAH 250,000.00 (applicable currency equivalent) daily per customer. Previously, this amount was limited to UAH 100,000.00. UAH. The Regulator believes this will promote depositors’ confidence in the Ukrainian banking system.

Secondly, Ukrainian resident companies, that received loans from non-residents, are from now on able to buy foreign currency to repay such obligations even if they already own foreign currency over USD 25,000.00. The mentioned targeted use of currency is mandatory. The Regulator predicts such step will ensure timely repayment of external liabilities of Ukrainian businesses.

Further liberalisation of the financial regulation is nowadays on the Regulator’s agenda, but its adoption and implementation will depend on the stability of monetary and currency markets of Ukraine as well as on the overall macroeconomic situation in the country.

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