The National Bank of Ukraine (NBU) retains the surrender requirement committing legal entities to sell 50% of Ukraine’s foreign currency proceeds. The rate was lowered to 50% in April this year.

Please note that the surrender requirement is set for every six months. Last time NBU reviewed this requirement at the end of May this year and set the rate at 50% from 16 June through 13 December 2017.

Today, the NBU Board finds it expedient to retain the requirement unchanged, since at present the requirement is a necessary instrument for regular foreign currency supplies to the interbank foreign exchange market and thus important for foreign exchange market stability.

As before, the authorized bank has to initially credit foreign currency proceeds subject to mandatory sale to a separate account ‘Distribution Accounts of Business Entities’. On the following day of crediting the funds to the distribution account the bank is obligated to sell the funds without a client order.

Simultaneously the list of business transaction proceeds released from the surrender requirement was extended. From now on, the requirement does not apply to transfers transacted at expense of own (non-purchased) customer funds repaid by a foreign bank.

As before, a customer may dispose of purchased and repaid foreign currency within seven days of funds transfer by the authorized bank. On the eighth day following the transfer these proceeds are subject to the surrender requirement, provided the 10-day term was not exceeded for the resident to dispose of purchased foreign currency as prescribed by the respective regulation of the NBU.

The decision on retaining the surrender requirement was approved by NBU Board Resolution On the Imposition of Surrender Requirements No. 129 dated 13 December 2017 that comes into effect on 14 December 2017 and remains effective through 13 June 2018.