The National Bank Сanceled the Mandatory Sale of Foreign Exchange Earnings by the Business

The National Bank Сanceled the Mandatory Sale of Foreign Exchange Earnings by the Business

In order to liberalize the implementation of certain foreign exchange operations, the National Bank cancels the requirement for the mandatory sale of foreign exchange earnings. The norm obliging entrepreneurs to sell 30% of foreign exchange earnings in the interbank foreign exchange market ceased to operate from June 20, 2019.

These changes were approved by the NBU Board of Directors of June 18, 2019 No. 78 “On Amending the Provision on Safeguards and Determining the Procedure for Performing Certain Transactions in Foreign Currency”. In particular, Section III “Obligatory Sale of a Part of Receipts in Foreign Currency” is excluded from the Regulation on Protection Measures and Determination of the Procedure for Performing Certain Operations in Foreign Currency.

As noted in the NBU, the next monetary easing will not have a negative impact on macro-financial stability. In this way, the regulator continues monetary liberalization in accordance with the roadmap, which provides for the gradual removal of all monetary restrictions in accordance with the improvement of the macroeconomic conditions in Ukraine.

This year, the National Bank has already lifted or relaxed over 30 currency restrictions. The abolition of the mandatory sale of foreign exchange earnings of a business is another step towards the free movement of capital, determined by one of the strategic goals of the NBU.