NBU softens currency restrictions

The national Bank of Ukraine (NBU) in the near future to mitigate foreign exchange restrictions in connection with the decision of the International monetary Fund (IMF) on the allocation of the next tranche. This was stated by Deputy head of the national Bank Oleg Churiy.

In particular, the NBU plans to increase the limits on the sale of cash currency to the population.

Also, the national Bank expects to reduce the rate of compulsory sale of foreign currency revenues of exporters will now be able to “hold” more of dollars received from foreign buyers, and convert them into the hryvnia.

“We’re going to soften requirements for mandatory sale of foreign currency earnings of exporters and also the possibility of the population on purchase of cash foreign currency. These decision on the easing will be adopted in the near future,” said Curi.

Now term of return of currency earnings is 120 days, also has a rule providing for mandatory sale of 65% of foreign exchange earnings.

Earlier it was reported that the national Bank intends to more than 12 times to increase the limit of purchase of currency by physical persons from 12 thousand UAH equivalent to UAH 150 thousand.

As is known, Ukraine and the IMF in March 2015 signed a Memorandum of economic and financial policies which the country should undertake in the framework of the extended Fund (EFF). The entire program provided Ukraine with about $ 17 billion of which have already been allocated 7,7 billion dollars. So, in September 2016 after a delay of a year, the IMF approved the granting Ukraine the third tranche in the amount of one billion dollars.

Yesterday, April 3, the Board of Directors of the IMF completed the third review of the economic program of Ukraine in the framework of the extended financing facility (EFF) that allows you to give Ukraine about 1 billion dollars.

The decision to allocate the tranche was made after further examination by the IMF of a possible impact of the trade embargo on the Ukrainian economy and update the macroeconomic forecasts of the NBU and the Ministry of Finance. The IMF came to the conclusion that the situation will be a moderate impact on economic growth and the balance of payments and will not pose a threat to the implementation of the inflation target of the NBU.

While the IMF asked Ukraine to stop reforms. In particular, according to the IMF, Ukraine can no longer postpone the large-scale pension reform, including raising the effective retirement age.

Commenting on this statement of the IMF on the need to increase effective retirement age, the Minister of Finance of Ukraine Alexander danyluk has already explained that we are talking about the greater fairness of the pension system.

“We set the right setting – experience. Without this we can not raise the level of pensions for the Ukrainians and to guarantee them through 3 – 4 years”, – said the head of the Ministry of Finance.