The new currency exchange policy is to be introduced

The foreign currency exchange policy is to change.  The Presidential Draft Law No. 8152 “On Currency” was adopted as a basis by the Verkhovna Rada of Ukraine. The said will govern basic rules for foreign exchange regulation implementing as well as currency supervision.

Therefore, it is intended to revoke the Decree of the Cabinet of Ministers “On the System of Currency Regulation and Currency Control” and the Law “On the Procedure for Settlements in a Foreign Currency” as well as to amend some other legal regulations.

With the Draft Law it is suggested to establish:

– a new regime of currency regulation under the “everything which is not explicitly forbidden by law is allowed” principle;

– categories and definitions as to currency regulation;

– a common regime for conducting currency transactions in Ukraine;

– the details for foreign exchange transactions performance (having listed the exceptions for settlements allowed in Ukraine in a foreign currency), currency ​​trading transactions, cross-border transfers and the diversion of a foreign exchange.

It is also planned to introduce regulations in terms of the licensing of professional activities in providing services related to currency transactions, such as covering the specifics of currency supervision, information sharing between subjects of foreign exchange operations and penalties for currency regulation infringements.

The Draft also proposes to regulate the rights and liabilities of residents and non-residents in the currency transactions sphere, inter alia, the obligation to submit documents and information to currency supervisory authorities and agents.

On top of that, it is assumed that the National Bank will retain the minimum necessary powers with regards to this matter, which shall prevent a sudden outflow of short-term capital.