NBU significantly liberalizes ForEx for 3M
9 June 2016
The National Bank of Ukraine (NBU) took steps towards greater ForEx liberalization on June 7. In particular, the NBU cut the percentage of the foreign currency sale requirement to 65% from 75%. The regulatorfinally allowed the repatriation of dividends from profits earned in 2014-2015. It also doubled the limit of foreign currency deposits withdrawal to UAH 100,000 (approximately USD 4,000) from UAH 50,000 (nearly USD 2,000). On the top of that, the NBU increased the limit on foreign currency cash purchases to UAH 12,000 (USD 480) from UAH 6,000 (USD 240) per person per day. The above-listed liberalization initiatives will be valid only until Sept. 14, 2016.
Additionally, the central bank allowed banks to adjust their commercial exchange rate during the course of a business day.
Alexander Paraschiy: The NBU is taking advantage of its window of opportunities opened by the recent strong foreign currency inflow. Such positive ForEx trends have enabled more decisive liberalization steps, including the reduced foreign currency sale requirement and softened restrictions on foreign currency transactions. All this should add some confidence to the national currency and banking system, but a fly in the ointment is the limited three-month period of such liberalization steps.
