NBU stimulates supply of foreign currency

The National Bank of Ukraine (NBU) has introduced temporary measures to soften pressure on the local currency. Since Monday, Nov. 19, it shortened its deadline on export proceeds repatriation to 90 days from 180 days and obliged exporters to sell 50% of their foreign currency proceeds on the interbank currency exchange. Starting Nov. 27, the NBU will require automatic conversion into hryvnias of all transfers received by individuals from abroad that exceed UAH 150,000 (about USD 19,000). All the regulations are introduced for six months.

Alexander Paraschiy: These tough measures will allow the NBU to increase temporarily the supply of foreign currencies at the interbank and thus soften pressure on hryvnia. This should allow the bank to pursue a controlled and smooth devaluation of the local currency over the next 1-2 months to about UAH/USD 8.4x from the current level of 8.2x.