The National Bank of Ukraine has specified the rules governing a range of FX transactions involving crediting of incoming funds in foreign currency to the current accounts held by individuals in Ukraine. These rules are set forth in NBU Board Resolution No 870, dated 8 December 2015, On Amendments tо NBU Board Resolution No. 365, dated 16 September 2013.

Under these rules, a bank is allowed to credit an individual's current account in foreign currency with incoming funds in foreign currency transferred from another individual’s account or deposited in cash by the account holder. Additionally, as an exception to the rules, banks are allowed to credit incoming funds in foreign currency in the form of interest accrued on the current or savings account balance, proceeds from Ukrainian treasury bills and domestic sovereign bonds, proceeds from purchase/sale and FX transactions in cases prescribed by applicable laws, including NBU regulations, foreign currency received as a result of inheritance or under a gift agreement, and amounts received as return of the funds that have been transferred erroneously or paid in excess.

Resolution No. 870 has clarified that banks are also allowed to credit accounts with incoming funds in foreign currency received by an individual as redemption proceeds (principal and interest) from registered savings certificates (certificates of deposit) denominated in foreign currency.

As before, other foreign exchange proceeds shall be sold by the bank in the interbank FX market and the hryvnya equivalent of the sold foreign currency shall be credited to the individual's current account in domestic currency.

Resolution No.870 comes into effect from 10 December 2015.