To further facilitate business activities in Ukraine, the National Bank of Ukraine (NBU) lifts the surrender requirement of a share of foreign currency proceeds.
The requirement that obliges entrepreneurs to sell 30% of their foreign currency proceeds in the interbank FX market will no longer be effective starting from 20 June 2019. The proceeds of businesses that will be credited to their distribution accounts on 19 June will not be subject to the obligatory sale.
This loosening measure will not have any adverse impact on the macroeconomic stability. According to the statistics of recent years, both when the surrender requirement was at 50% and when it was reduced down to 30%, businesses sold over 90% of foreign currency in total.
With this measure, the NBU continues the currency liberalization according to the roadmap, which envisages gradual lifting of all currency restrictions as Ukraine’s macroeconomic conditions improve.
This year, the NBU cancelled and loosened more than 30 currency restrictions. Lifting the surrender requirement on foreign currency proceeds is another step to the free movement of capital, which is one of the NBU’s strategic goals.
The above amendments were approved by NBU Board Resolution No. 78 On Amendments to the Regulation On Safeguards and Procedures for Certain Transactions in Foreign Currency dated 18 June 2019.
