ALERT: Ukraine’s central bank abolishes obligatory sale of foreign currency
The National Bank of Ukraine ( has abolished a rule that required businesses to exchange 30 of their foreign currency earnings into Ukrainian hrivnia ( on the currency exchange market on the day following receipt of foreign currency on their bank account in Ukraine The new regulation took effect on 20 June 2019.
Just a year ago, businesses had to exchange 50 of foreign currency earnings, and as recently as 2014 all foreign currency earnings had to be exchanged. The requirement had been introduced to prevent hryvnia’s devaluation and to provide a vital source of foreign currency to Ukrainian economy during the economic crisis of 2014-2015.
The NBU decision is one more step in the gradual easing of currency restrictions and liberalization of cross border transactions and international banking in Ukraine.
This new wave of liberalization began with the new law on currency and foreign exchange operations taking force on 7 February 2019 which included the abolishment or substantial relaxing of about thirty different restrictions in the foreign exchange market.
In particular, the National Bank of Ukraine simplified the procedure for cross border financing, as reported in our earlier alert.
The changes have been positively received by the business community and also reflect the NBU’s confidence in the stabilization and recovery of the Ukrainian economy.
The mentioned regulations were approved by the Resolution of the Board of the National Bank of Ukraine № 78 “On Amendments to the Regulation on Protection Measures and Determination of the Procedure for Conduct of Particular Foreign Currency Transactions” on 18 June 2019.
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