Ukraine central bank makes more ForEx rules easing

The National Bank of Ukraine (NBU) made one more step towards ForEx liberalization, according to an NBU press-release on May 30. First, the regulator lifted restrictions on foreign currency purchase for legal entities if they have on their accounts more than USD 100,000 of their own money. Second, individuals now can wire abroad foreign currency in equivalent more than UAH 150,000 for non-trade operations. Third, banks now can exchange non-convertible currencies for freely convertible currencies.

The restriction on individuals wire abroad will be lifted from June 12; the other changes come into effect from May 31.

Alexander Paraschiy: These are relatively minor but still symbolic easing steps, especially after the substantial easing last week. The NBU shows it’s confident on hryvnia prospects and we also do not expect any turmoil at the ForEx market till the end of the summer. However, we still anticipate the return of depreciation tendencies close to autumn amid worsening export trends. More brave liberalization steps are conditional on external trade developments over the upcoming months and cooperation with the IMF.