The National Bank clarifies a number of currency restrictions
The NBU is optimizing a number of currency restrictions to prevent unproductive capital outflows to protect Ukraine's international reserves and maintain the stability of the foreign exchange market.
Thus, starting from February 21, 2024, changes in a number of areas will come into effect.
First, the NBU has clarified the conditions for businesses to purchase foreign currency.
Currently, businesses must first use their existing foreign currency to make payments in foreign currency and then, if necessary, purchase it on the Ukrainian foreign exchange market. Businesses can also conduct foreign exchange transactions on a "swap" basis to buy and sell foreign currency, if the first part of the transaction involves the bank purchasing foreign currency from the client.
To ensure that such transactions are not used to circumvent the current currency restrictions, the NBU is clarifying the conditions for companies to purchase foreign currency. Thus, starting from February 21, when purchasing foreign currency by a business, banks will take into account not only the funds in foreign currency placed on the client's current and deposit accounts, but also information on the client's outstanding foreign exchange transactions with banks under swap agreements, under which the first part of the transaction (the sale of foreign currency by the client to the bank) was carried out.
To this end, on the date of purchase of foreign currency, legal entities will have to provide the bank with information on the foreign currency sold by them under the first part of the swap transaction (currency, transaction term) under outstanding agreements with banks. This information will be provided additionally, along with information on available funds in foreign currency on current and deposit accounts.
Second, the NBU clarified the specifics of currency supervision by banks with respect to the deadlines for settlements under export transactions.
Currently, banks may complete currency supervision of residents' compliance with the deadlines for settlements under export transactions after crediting the resident's current account with the bank with funds received from a non-resident for goods, if these funds were transferred from abroad.
In order to encourage the return to Ukraine of foreign currency earnings from the export of goods, the NBU is clarifying the specifics of currency supervision by banks. Starting from February 21, banks will be able to complete currency supervision of the relevant transactions only if the funds from a non-resident are received in foreign currency. Instead, transfers in hryvnia will not be the basis for completing currency supervision by the bank.
These and other amendments were introduced by Resolution of the Board of the National Bank of Ukraine No. 24 "On Amendments to Resolution of the Board of the National Bank of Ukraine No. 18 dated February 24, 2022", which will come into force on February 21, 2024.
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