National Bank of Ukraine simplifies FCY purchases for importers

The Council of the National Bank of Ukraine (NBU) ruled on March 1 to simplify the foreign currency rules for importers who are clients of the nation’s banks. Starting March 22, these importers are not required to wait for NBU approval to buy foreign currency or to make a wire abroad. Instead, they need only report on such operations afterwards and halt them if concern is expressed by the regulator. Also, the NBU should be informed if a dissatisfied importer with dubious operations moves to another bank. 

Alexander Paraschiy: This step should improve business conditions for Ukraine’s importers. Traditioally, the NBU took two days (t+1 approach) to consider whether an import contract involving foreign currency is reliable or not. In cases of turbulence at the ForEx, the NBU simply rejected some import contracts to balance the market. The new rules look more risk-oriented but it’s not clear whether the old regulations are totally eliminated, given that the t+1 approach still seems to be in place.