The NBU has doubled to EUR 200,000 the e-limit on some FX transactions by individuals to transfer funds abroad or into accounts nonresident legal entities have opened in Ukraine.
These transactions include:
- investing abroad
- depositing funds into own accounts abroad
- transferring funds under life insurance agreements
- making loans to nonresidents.
"The NBU estimates that this easing measure will not disrupt the operation of Ukraine’s FX market, one of the reasons being that individuals have been able to freely buy noncash foreign currency for more than a year now, without having to make any commitments or justify these transactions. In 2020, individuals transferred about EUR 274 million abroad within the e-limit. This amount is lower than the average daily trading volume in the interbank FX market," said NBU Deputy Governor Yuriy Heletiy.
Favorable FX market conditions create prerequisites for the gradual liberalization of currency regulation. The increase in the e-limit comes as another step in the currency liberalization.
As one of its priorities under the Currency Liberalization Roadmap, the NBU aims to completely remove the e-limit on international investments by individuals. This will be possible after a raft of draft laws on combating BEPS (under the Action Plan on Base Erosion and Profit Shifting) are passed and implemented.
The NBU also continues to promote the use of digital analogues of paper documents. To this end, the NBU has allowed banks and nonbank financial institutions to use digital passports in the mobile application Diia when making FX transactions with individuals, provided the required technological capabilities are available.
These changes were approved by NBU Board Resolution No.14 On Amendments to the Regulation on Safeguards and Procedures for Certain Transactions in Foreign Currency dated 3 February 2021, which takes effect on 5 February 2021.
Pursuant to the Law of Ukraine On Currency and Currency Operations, the NBU on 7 February 2019 imposed a EUR 50,000 e-limit on certain FX transactions by individuals to transfer funds from Ukraine or into checking accounts nonresident legal entities have opened in Ukraine.
On 18 December 2019, the NBU raised the annual e-limit on certain FX transactions by individuals to EUR 100,000 from EUR 50,000.