National Bank Canceled Part of Currency Restrictions

National Bank Canceled Part of Currency Restrictions

The National Bank of Ukraine took into account numerous appeals from the business and lifted a number of restrictions for Ukrainian companies, foreign investors and diplomatic missions. Changes in the currency legislation were approved by the National Bank of Ukraine Resolution No. 86 of June 27, 2019 and entered into force on July 2.

In addition to the abolition of the limit on financing the foreign missions and separate divisions of Ukrainian companies, which we reported earlier, by Decree No. 86 of the National Bank further implemented:

  • simplified the reinvestment of foreign investors’ income from operations with Ukrainian securities. From now on, non-residents can transfer funds received on securities, accounted in a foreign depositary bank, from the correspondent account of this institution to their account in Ukraine.
  • abolished the prohibition of cash settlements in foreign currency in terms of payment of consular fees by individuals and legal entities for the legalization of shipping documents in diplomatic missions or consulates of countries that did not join the Hague Convention of October 5, 1961.
  • expanded the list of transactions allowed to be carried out in foreign currency in Ukraine. The National Bank of Ukraine added to the list of operations on money credits, grants, loans between the Cabinet of Ministers and banks under international agreements.

• improved the risk-oriented supervision of banks in terms of inspections of foreign counterparty banks, transferred by the Ukrainian companies. From now on, banks independently, based on the information from public sources, will determine the degree of risk of foreign counterparty banks on foreign exchange transactions (source: NBU official web portal).