Starting from 21 April 2023, the National Bank of Ukraine will ease a number of administrative restrictions to create conditions for launching the e-residency project and strengthen positive trends in the cash segment of the FX market, which have contributed to a significant narrowing of the spread between the cash and official exchange rates.
Cash segment of the FX market
The NBU has consistently been taking steps to minimize the existence of multiple exchange rates, thereby enhancing the stability of the FX market and improving exchange rate expectations.
To the same end, the NBU is expanding the banks’ ability to sell cash foreign currency to households. Starting on 21 April 2023, when calculating the amount of cash foreign currency that can be sold in the FX market, a bank will take into account 120% (instead of 100%) of noncash foreign currency purchased from households since 13 April 2022.
The relevant changes are intended to preserve favorable conditions in the FX market.
Foreign currency transfers by e-residents
The NBU has allowed e-residents (after paying taxes in Ukraine) to transfer to their accounts abroad funds in foreign currency received on accounts in Ukrainian banks from nonresidents (for provided services or works).
The relevant changes will put no pressure on the FX market and Ukraine's international reserves, as such transactions will not involve the purchase of foreign currency. The e-resident will transfer foreign currency received from abroad.
The implementation of the e-residency project will help increase the state budget revenues, promote Ukraine as a global IT brand, and improve Ukraine's position in international rankings.
Said measures, as well as a number of other clarifying changes, were approved by NBU Board Resolution No. 53 On Amendments to NBU Board Resolution No. 18 dated 24 February 2022 dated 20 April 2023, which takes effect on 21 April 2023.
The Law of Ukraine No. 2654-IХ On Amending Tax Code of Ukraine and Some Other Legislative Acts of Ukraine on Business Activities of E-Residents in Ukraine dated 6 October 2022 came into force on 1 April 2023. It allows foreign citizens and stateless persons who have obtained the e-resident status and registered as a sole proprietor to conduct business activities and pay taxes in Ukraine without leaving their country of residence or host country.
As part of the project, the NBU allowed e-residents, as of 8 March 2023, to open current accounts for conducting business activities with a bank that concluded the relevant agreement with the Ministry of Digital Transformation of Ukraine. Allowing e-residents to transfer funds in foreign currency received from nonresidents (after paying taxes) is also one of the steps that will facilitate the implementation of the relevant project.