Ukraine central bank further eases restrictions on ForEx operations

The National Bank of Ukraine (NBU) has decided to
deregulate several foreign currency exchange (ForEx) operations, Deputy
Governor Oleh Churiy announced at a Feb. 6 press conference. Starting Mar. 1,
the compulsory sale of foreign currency receipts by Ukrainian exporters will be
reduced to 30% from 50%.

The NBU has also simplified the process of foreign
currency purchases on the ForEx, freeing clients from the requirement of having
to reserve cash one day prior to the purchase.

In addition, the central bank has allowed repatriation
of 2018 dividends, keeping the limit at USD 7 mln per month per dividend-paying
company.

Evgeniya Akhtyrko: These are
the latest positive changes in the NBU’s ForEx liberalization campaign.
Reducing the compulsory sale of foreign currency receipts will enable Ukrainian
exporters to have more flexibility in cash management. Secondly, this
liberalization reflects the NBU’s increasing confidence in the situation on
Ukraine’s ForEx and its ability to regulate itself.

At the same time, the central bank has also
indicated it remains cautious on dividend repatriation by maintaining last year’s limits.