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NBU Continues Currency Liberalization Efforts

NBU Continues Currency Liberalization Efforts

As it proceeds with its currency liberalization efforts, the NBU has lifted a series of restrictions that have lost their relevance. Specifically, the regulator has removed the bans on forward FX sales by corporate clients.

These transactions have previously been made only to hedge risks of exchange rate changes that affect export and import transactions, loan agreement transactions, and purchases of Ukrainian domestic government debt securities by nonresident legal entities.

In addition, the NBU has lifted the ban on transactions by individuals to make forward FX purchases and sales for hryvnias, to buy and sell foreign currency and investment metals on margin trading terms, and to make FX payments when buying FX government securities.

The central bank has also canceled the ban on banks to carry out swap transactions with resident individuals where the first part of the transaction involves the sale of foreign currency or investment metals to a customer.

On top of that, the NBU has allowed banks and nonbank financial institutions to use cashless hryvnias to make FX purchases from individuals through self-service terminals, and approved a procedure for making these transactions. More specifically, the NBU has determined that after a sale of foreign currency through a payment device takes place, hryvnias will be credited to the individual’s checking account. These transactions must comply with AML legislation.

To promote the use of digital versions of paper documents, the NBU has clarified the requirements for FX transfers from Ukraine by individuals and for the receipt of FX transfers from abroad. When making these transactions, Ukrainian citizens can now use their digital passports in the mobile app Diia, which displays the information stored in their IDs and biometric international passports.

By NBU estimates, the easing measures outlined above will ensure that currency liberalization continues, and will help:

  • expand the FX-risk-hedging capabilities of businesses and individuals
  • further develop new services that will be provided by authorized currency exchange institutions
  • advance the use of digital documents in FX transactions.

Relevant amendments were approved by NBU Board Resolution No. 3 On Amendments to Certain Regulatory Documents of the National Bank of Ukraine dated 15 January 2021.

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