Home
/
News
/

Ukraine requires exporters to sell all proceeds in foreign currency

Ukraine requires exporters to sell all proceeds in foreign currency

21 August 2014

The National Bank of Ukraine (NBU) boosted to 100% from 50% the level of compulsory sale of foreign currency proceeds from export and investment activity as of today, the Interfax-Ukraine news agency reported on Aug. 20. The regulation will be valid for the next three months.

 

On Aug. 12, NBU Head Valeriia Gontareva did not rule out that administrative tools (including an increased level of compulsory foreign currency revenue sales) will be leveraged if market instruments do not stabilize the hryvnia.

 

Alexander Paraschiy: The NBU’s move suggests the ForEx situation remains tense despite its regular interventions. At this stage, it is difficult to say whether this particular measure will help to stabilize the market since some part of the ForEx tension stems from reduced export proceeds owing to economic damage from the war in the eastern regions.

 

This measure might work if exporters actually had preferred to abstain from selling foreign currency (in excess of the previously compulsory level of 50%) in the face of overwhelming uncertainty in the country. Therefore, the tougher regulation might have no immediate effect on the ForEx market. For example, if exporters expect the hryvnia will be weaker in the near term, they can ask their partners to delay foreign currency transfers for some period of time.

Latest News

News

23

02/2022

Separatists may claim entire territories of two Ukrainian regions

Russia has recognized “all fundamental documents” of the self-proclaimed Donetsk and Luhansk People’s Republics (DNR...

News

23

02/2022

U.K. to provide USD 500 mln loan guarantee for Ukraine as IMF mission starts

The British government is going to provide up to USD 500 mln in loan guarantees...

News

23

02/2022

MinFin bond auction receipts jump to UAH 3.5 bln

Ukraine’s Finance Ministry raised UAH 3.3 bln and EUR 7.2 mln (the total equivalent of...