On July 30, 2015, the Board of the National Bank of Ukraine adopted Resolution No 495 On Amendments to the Regulation on the Application by the National Bank of Ukraine of Corrective Measures for Violation of the Banking Legislation (hereinafter – Resolution No 495).  This resolution is intended to enhance responsibility of banks for their actions in the foreign exchange market, in particular, breaches of the requirement set out in the NBU regulation On Resolving the Situation in the Money and Foreign   Exchange Markets of Ukraine, which has set limits on the amount by which the total volume of purchased non-cash foreign currencies and investment metals for hryvnias under the authorized banks’ transactions for their own benefit may exceed the sold volumes.

Commenting on Resolution No 495, Deputy Governor of the National Bank of Ukraine Oleh Churii said:  These temporary restrictions will surely cause inconveniences in the foreign market. At the same time, they will help maintain equilibrium in the interbank foreign exchange of Ukraine, which is one of the prerequisites for ensuring price stability in the country.   Therefore, we require banks to make prudent and disciplined decisions when purchasing non-cash foreign exchange in the interbank foreign exchange market. Naturally, we are sometimes compelled to apply punitive sanctions against violators.  The rationale behind the move by the National Bank of Ukraine is set out in Resolution No. 495. First, a violator will be served with a written notice.  If the violator ignores it and fails to comply with the regulation again, the National Bank of Ukraine will impose a fine thereon. The flagrant violators will not only be fined but also face the suspension/termination of certain types of foreign exchange operations”.