The National Bank of Ukraine (NBU) is easing a number of foreign exchange restrictions for the active participation of nonresident banks in the government bonds market, more active participation of nonresidents in trading on commodity exchanges, support for pensioners abroad, while at the same time toughening foreign exchange supervision requirements for certain import operations to prevent unproductive capital outflow from the country, the regulator said in a press release on Friday.

According to it, in particular, PJSC Ukrposhta as a designated postal operator will be able to make transfers to pay pensions and social benefits to Ukrainian citizens temporarily residing abroad.

In addition, the NBU will allow the transfer of hryvnia funds to correspondent accounts of nonresident banks opened with Ukrainian banks for transactions with Ukrainian domestic government debt securities denominated in the domestic currency that occur with the participation of a nonresident bank. "According to the NBU's estimates, these changes will facilitate a more active participation of nonresident banks in transactions with hryvnia domestic government debt securities. At the same time, due to the restriction on the conversion of these funds into foreign currency and their transfer abroad, said changes will not put more pressure on the FX market," the central bank said.

Commodity exchanges will be able to transfer funds to a nonresident in order to repay the amount of the security deposits previously paid by the nonresident to participate in trading. At the same time, these funds can be reimbursed only at the expense of funds previously transferred by a nonresident from abroad to participate in trading on a commodity exchange.

"As a result, the foreign currency will not be purchased, so the pressure on the FX market will not increase. Instead, such changes will help ensure that exchanges meet their liabilities to traders, which in turn will help increase FX inflows to Ukraine," the NBU said.

At the same time, the central bank said that banks will not be able to complete currency supervision of an import transaction if funds are fully or partially repaid to the importer from a nonresident's account opened with a Ukrainian bank. "The relevant change is necessary to prevent the unproductive outflow of foreign currency abroad, which will allow to protect Ukraine's international reserves and stability in the FX market," the regulator said.

These changes were approved by NBU Board Resolution No. 96 on Amendments to NBU Board Resolution No. 18 dated 24 February 2022 dated 10 August 2023, which comes into effect on 12 August 2023.