Home » Press centre » News

NBU Published a Draft Structure for Future Currency Regulation

17 September 2018

Press Release

 

The NBU published a draft currency regulation structure, which will come into force together with the Law of Ukraine On Currency and Currency Transactions on 7 February 2019. The relevant materials were presented to the banking and expert community by the NBU Deputy Governor Oleh Churii and specialists of the NBU Open Market Department.

 

Unlike the complicated regulation package comprising 56 regulatory acts on currency regulation, the new regulations will be simple, understandable, and accessible. It will consist of seven new key regulatory acts on currency regulation, which will determine:

 

      the currency market structure and rules for trading in foreign currency and investment metals

      the procedure for settlements, transactions to purchase and transfer foreign currency within Ukraine and abroad

      cross-border movement of national and foreign currency in cash, investment metals, as well as securities in documentary form by banks, legal entities and individuals

      a general list of remedies that may be applied by the NBU, criteria and procedure for their introduction, terms of their extension and early termination

      a list of implemented remedies and the procedure for their application (temporary anti-crisis resolution)

      other instruments for the stabilization of the money market (currency operations provisioning), as well as the reporting system for the collection of information on foreign currency transactions

      the procedure for observing the deadlines for settlements established by the NBU.

 

“The development of the structure of currency regulation is the first step towards the implementation of the Law On Currency and Currency Transactions.  Then we will complete them. At the same time, we are planning to discuss the draft of each of the resolutions with the banking and expert community before finalizing them and publishing their final version a month before their entry into force,” said Oleh Churiy.

 

Under the Law On Currency and Currency Transactions, a number of steps to liberalize currency regulation will be introduced as soon as the Law comes into force. In particular:

 

First, the deadline for settlements under export/import transactions will be extended to 365 days (from 180 days).

 

Second, cancellation of currency supervision for export/import operations under UAH 150,000.

 

Third, individual currency licenses will be canceled. In their place, a system of electronic limits will be introduced.

 

Fourth, sanctions in the form of termination of foreign economic activity for breach of the terms of payments will be lifted.

 

Fifth, individuals will be allowed to purchase foreign currency online. At the same time, a limit similar to the limit on foreign cash purchases will be applied to such operations (currently, the equivalent of up to UAH 150,000 per day).

 

“Whether the new regulatory acts will include steps for currency liberalization other than those already provided for by the Law On Currency and Currency Transactions will depend on the macroeconomic conditions at the time of the completion of work on the new currency regulation. As before, the key objective of the National Bank of Ukraine is to ensure macroeconomic and financial stability in Ukraine. Thus, further relaxation of the rules for foreign exchange operations will only be possible under favorable macroeconomic conditions,” emphasized Deputy NBU Governor.

 

The Law of Ukraine On Currency and Currency Transactions was approved by the Verkhovna Rada on 21 June 2018. The Law came into effect on 7 July 2018 and will be implemented after the transition period of seven months from the effective date.


  Top  
 
Last modification   17.09.2018