The NBU cancelled certain restrictions for currency market

The national Bank of Ukraine (NBU) in the framework of further liberalization of currency regulation has removed restrictions that have lost their effectiveness and mitigation which will not lead to destabilization of the situation on the interbank and cash segments of the foreign exchange market. This was reported by the press service of the NBU.

In particular, the regulator lifted the ban on the purchase of foreign currency if the client has accounts on more than 100 thousand USD of own funds. Previously, under the condition exceeding the specified amount, the customer had to fulfill obligations due to own foreign currency.

In addition, abolished restrictions for individuals on the transfer of funds outside Ukraine for non-commercial transactions. Previously, they were limited to the amount not more than UAH 150 thousand per month (with the exception of some cases).

The NBU also allowed banks to carry out operations on exchange of foreign currency without restrictions on the group of the classifier of foreign currencies and Bank metals on the interbank and foreign exchange market.

“Until now, exchange transactions are carried out exclusively within the same group of the classifier, with the exception of operations carried out: in the interbank and foreign exchange markets commitments on import contracts and on foreign exchange markets to purchase foreign currency first group of the classifier of foreign currency other groups,” reminded the Governor.

According to the NBU, the removal of these restrictions will allow banks and their customers more flexibility to manage their own liquidity and a positive impact on the regulation of foreign exchange position of banks.

These changes were approved by resolution of the Board №44 “About modification of some regulatory legal acts of the NBU” dated may 30, 2017.

Removing the restriction for individuals on the transfer of funds outside Ukraine in the framework of non-trading operations takes effect on 12 June 2017. Other changes take effect from 31 may 2017.

At the same time, recognizing the need for further support for the stability of the currency market of Ukraine, the national Bank decided to keep the requirement for mandatory sale of foreign currency proceeds from abroad in favor of legal entities at the level of 50%.

Further liberalization of currency regulation will be carried out in the presence of favorable macro-financial conditions and in accordance with the Concept of the new currency regulation, said the regulator.