The National Bank Raised the Limit on Repatriation of Dividends from 7 to 12 Million Euros per Month

The National Bank Raised the Limit on Repatriation of Dividends from 7 to 12 Million Euros per Month

Within the limits of currency liberalization, the National Bank raised the limit on repatriation of dividends from 7 to 12 million euros per month. This relaxation will not be critical for maintaining macro-financial stability, at the same time it will help to improve the investment climate in Ukraine.

Relevant changes regarding the increase in the limit on repatriation of dividends were approved by the resolution of the Board of the National Bank No. 66 dated May 7, 2019 “On Amending the Provision on Protection Measures and Determining the Procedure for Certain Operations in Foreign Currency”, which has already entered into force.

This is the second increase in the limit during this year. In February, the National Bank, along with the introduction of about 30 other currency easing, increased the limit on repatriation of dividends from $ 7 million up to 7 million euros per month.

According to the National Bank, the free management of profits received in Ukraine is an extremely important issue for foreign investors. The increased limit of 12 million euros per month actually meets the needs of all enterprises operating in Ukraine with foreign investments.

At the same time, currency easing introduced with the introduction of a new liberal system of currency regulation since February 7, 2019, did not have a significant impact on the financial market. Today, there are quite low volumes of both investments abroad within the framework of e-limits and repatriation of dividends. Therefore, easing simplified the business, but did not press on the hryvnia exchange rate, which rose 4.3% from the beginning of the year. At the same time, the net purchase of currency by the National Bank in the interbank foreign exchange market was about 1 billion US dollars.