The National Bank of Ukraine pushes ahead with easing temporary FX restrictions, the relaxation of which will not have a destabilizing impact on the interbank FX market.

First, the NBU has exempted FX receipts from nonresidents from surrender requirements if these funds are received as a security deposit (collateral, deposit, guarantee) that serve as a guarantee of the nonresident’s participation in an auction (bidding) conducted by a resident.

Second, the regulator allowed banks that purchase foreign currency for their customers not to include FX amounts received as a security deposit from a non-resident in the residents’ FX account balances.

These steps would help boost sales of Ukrainian products to nonresidents by making the procurement procedure easier for both state-owned enterprises and all economic agents.

Third, the NBU allowed banks to purchase foreign currency for their customers if the total FX amount held in the client’s account does not exceed the equivalent of USD 100,000. Until recently, FX purchases were allowed if the client’s total FX holdings were less than USD 25,000.

The respective amendments to this effect were approved by NBU Board Resolution No. 13 of 22 February 2017 On Amendments to NBU Board Resolution No. 410 of 13 December 2016. The resolution shall come into effect from 23 February 2017.