NBU approves new system of currency regulation, publishes roadmap of currency liberalization
The National Bank of Ukraine (NBU) has approved and published regulations that are the basis for a new liberal currency regulation system provided for by the law on currency and foreign exchange transactions.
According to the NBU's website, the new currency regulation system consists of eight main decrees of the NBU, which replaced the previous base of 56 regulatory acts in the sphere of currency regulation.
The new currency regulation provides for more than 20 easing provisions in the foreign exchange market, which will be introduced from February 7, 2019.
In particular, the deadline for settlements under export and import contracts is doubled to 365 days, currency supervision over export and import transactions of up to UAH 150,000 is cancelled, a free use of accounts of legal entities abroad is allowed (except for operations on transferring funds from Ukraine to such accounts).
Individual licenses for currency transactions are also canceled - they will be replaced by a system of e-limits (EUR2 million per year for legal entities and EUR50,000 per year for individuals).
Sanctions in the form of suspension of foreign economic activity for violation of settlement terms, as well as restrictions on the early repayment of external liabilities are abolished. At the same time, it is allowed to conclude currency forwards to hedge export-import and debt transactions, to carry out operations on the accounts of non-resident legal entities in the banks of Ukraine.
The procedure of registering foreign borrowings is also canceled, the online purchase of foreign currency by individuals is allowed (within the limit of cash currency purchase of up to UAH 150,000/day in equivalent). Banks are allowed to sell their customers government securities denominated in foreign currency for foreign currency, as well as sign currency swaps with residents and non-residents.
Banks can also make unlimited investments in investment grade equities.