For the first time since the beginning of the full-scale war, the National Bank of Ukraine has allowed banks to sell non-cash foreign currency to the population from August 29 without confirming the grounds or obligations for such an operation.

"Relevant transactions will be carried out at the rate set by the bank, within the monthly limit of UAH 50,000 equivalent in one bank," the NBU said on its website on Monday.

According to it, the National Bank also increased from UAH 100,000 to UAH 200,000 the equivalent of a monthly limit on the purchase of non-cash foreign currency by the population with subsequent placement on a deposit for three months. For the first time, this instrument was allowed on July 21, 2022, then with a limit of UAH 50,000 per month.

"These changes will contribute to the reorientation of part of the population's demand from foreign cash to non-cash, because transactions for the sale of non-cash currency by banks are more convenient and safe. This will reduce the difference between cash and the official rate," the regulator said.

He added that these actions were implemented within the framework of the strategy for easing foreign exchange restrictions, transition to a flexible exchange rate and return to inflation targeting, published in July. In accordance with it, the actions of the National Bank within the first stage of easing foreign exchange restrictions will be aimed, in particular, at minimizing the multiplicity of exchange rates.

"If necessary, the National Bank is ready to apply additional measures to minimize the multiplicity of exchange rates," the release says without specifying details.

It is clarified that the above changes were made by resolution No. 104 of the NBU Board dated August 28, 2023.