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NBU Allows Banks to Sell FX Cash to People, Clarifies Rules for Loan Repayment by Banks to Nonresidents

NBU Allows Banks to Sell FX Cash to People, Clarifies Rules for Loan Repayment by Banks to Nonresidents

On 14 April 2022, the NBU allowed banks to sell cash foreign currency to the public. The central bank expects that FX cash sales by banks will discourage the operation of the market for illegal FX transactions, with the result that risks to the Ukrainian people will decrease.

At the same time, in order to prevent pressure on the FX market, the NBU instructed authorized institutions to sell to customers no more FX cash than the difference between the total amount of FX cash purchased and the total amount sold. This difference will be calculated starting 13 April 2022.

In addition, the NBU has identified the specifics of setting cash exchange rates for customer transactions made by authorized institutions. In particular:  

  • The ask price charged by authorized institutions for FX cash may deviate from the NBU’s official exchange rate in effect on the day of transaction by no more than 10%.
  • The bid price offered by authorized institutions for FX cash must not be lower than the NBU’s official exchange rate in effect on the day of transaction.

Be advised that the sale of cashless foreign currency by banks to individuals is still prohibited, unless otherwise expressly allowed by Resolution No. 18 dated 24 February 2022 (as amended).

In addition, to prevent uncontrolled capital outflows from Ukraine, the NBU forbade banks to make early repayments of loans they have taken out from nonresidents.

The changes noted above, as well as a number of other clarifying changes, were approved by NBU Board Resolution No. 71 On Amendments to NBU Board Resolution No. 18 dated 24 February 2022 dated 14 April 2022. Resolution No. 71 is effective 14 April.

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