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Restrictions of the National Bank of Ukraine to foreign exchange operations have been prolonged

On December 16, 2016 the Resolution "On settlement of the situation on the monetary and foreign exchange markets of Ukraine" # 410 of NBU Board dated 13 December 2016 came into force.

National Bank of Ukraine prolonged the following time restrictions on the monetary and foreign exchange markets:

- mandatory sale of incomings in foreign currency to legal entities at 65%;

- 120-day payment period for export and import transactions of goods;

- One-day reservation period of hryvnia for purchase of foreign currency on the interbank market;

- Prohibition on early loan repayment from non-residents;

- Purchase of foreign currency by individuals amounting to 12,000 UAH per day; except for the purchase of foreign currency to perform their foreign currency obligations under a credit agreement.

- Cash withdrawal limit from foreign currency accounts amounting to 250, 000 UAH per day, etc.

It is also prohibited to sell or transfer foreign currency for conducting the following operations:

• return of funds abroad received by foreign investors from sale of Ukrainian issuers’ securities (except for the sale of government bonds on the stock exchanges of Ukraine and beyond, as well as sale of other debt securities on stock exchanges);

• return of funds abroad received by foreign investors from the sale of legal entities’ corporate rights, which are not registered by shares, reduction of the authorized capital of legal entities, withdraw of foreign investors from economic companies;

• repayment of dividends to the foreign investor abroad.

According to the press service of the National Bank in the future, in case of risk reduction of the price and financial stability and the presence of favorable conditions on the monetary and foreign exchange markets and the Ukrainian economy in general, the National Bank plans to continue gradual mitigation of temporary restrictions set by this Resolution.

This process will take place in accordance with the concept of a new model of foreign currency regulation and implementation action plan, which meet international practice - EU Directive 88/361 / EEC on the free movement of capital - and the Association Agreement between Ukraine and the EU.

Source: http://bank.gov.ua/