The National Bank of Ukraine moves ahead with its plans for gradual liberalization of FX controls. Further measures in this regard have been approved by NBU Board Resolution No. 361, dated 28 July 2016 On Amendements to Some NBU Regulations. This resolution, inter alia, has:
Extended the settlement deadlines for export and import transactions from 90 to 120 days;
Simplified the rules governing the execution of payments under import contracts by clients, including advance payments. Up until now, banks were required to use a letter of credit payment method for settlements under import contracts exceeding USD 500,000. From now on, the letter of credit payment method will be required for import contracts exceeding USD 1 million;
Banks shall be allowed, subject to certain conditions, to purchase foreign currency to repay index-linked domestic sovereign bonds.
These measures affirm our steadfast commitment to move ahead with plans for liberalization of FX controls and represent a crucial step towards a free foreign exchange market and unrestricted capital movement,” said NBU Governor Ms Valeria Gontareva, announcing a relaxation of FX controls at the press conference on monetary policy. “Ukrainian businesses have long awaited this news. This move will enable Ukrainian producers to step up international operations, while allowing the NBU to preserve stability in the FX market”.
The amendments shall take effect from 29 July 2016.