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NBU Lifts Restrictions on Foreign Currency Purchases with Loan Funds

NBU Lifts Restrictions on Foreign Currency Purchases with Loan Funds

In line with its currency liberalization effort, the NBU has allowed businesses to buy any amount of foreign currency with borrowed hryvnia funds. This measure will enable businesses to manage their liquidity more effectively and to buy the necessary amounts of foreign currency to meet their obligations as they see fit.

The NBU has also streamlined the currency supervision of businesses’ compliance with settlement deadliness in foreign trade transactions. Banks must complete the supervision of export transactions within five business days of receiving from the NBU the information on change of servicing bank in the client’s customs declaration. This eliminates the double checking of client transactions. In addition, the NBU has clarified the procedure for the supervision of import transactions in case of change of servicing bank in the customs declaration.

The NBU continues the currency liberalization as macroeconomic conditions improve. The NBU has already cancelled more than 30 FX restrictions since the beginning of the year. This year, the NBU has cancelled the required sale of FX proceeds by businesses, the requirement to accumulate hryvnia reserves ahead of FX purchases, and the restriction on dividend repatriation abroad.

The latest measures to ease currency supervision were approved by NBU Board Resolution No.104 On Amendments to Certain NBU Regulations dated 6 August 2019, which takes effect on 8 August 2019.

 

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