Ukraine's new law on currency, forex operations comes into effect – NBU

Deputy Governor of the National Bank of Ukraine (NBU) Oleh Churiy says new law of Ukraine on currency and forex operations, which lifts over 20 restrictions on the country's forex market, will come into effect on Thursday, February 7. "As for restrictions, which shall be lifted from February 7, there are more than 20 of them," he said. February 6 was the last day when the decree on currency regulation and the relevant legislation were in force, he added. According to Churiy, the terms for settlements under export-import contracts will double to 365 days, while sanctions in the form of termination of foreign economic activity for violation of settlement terms and currency control over operations worth up to UAH 150,000 (about US$5,511) will be lifted. Also, the law allows legal entities to freely use their foreign accounts and non-residents – to use their accounts in Ukrainian banks. Individual licenses for currency transactions will be replaced by a system of limits, while online forex trade by individuals, up to the equivalent of UAH 150,000 per day, will be launched. The limit on currency transfers abroad for individuals without opening bank accounts will be increased 10 times, to UAH 150,000. In addition, restrictions on the early repayment of external liabilities and the procedure for registering foreign borrowings will be canceled. Besides, Churiy mentioned few more steps to mitigate forex regulation in Ukraine, which had not been announced previously. In particular, starting from February 7, the businesses will be able to repatriate dividends for 2018 within EUR 7 million per month and buy currency on any given day without prior reservation of funds. Moreover, from March 1, the rate of mandatory sale of currency by exporters will drop from 50% to 30%. UNIAN memo. Law of Ukraine "On Currency and Currency Transactions" that had been passed by the Verkhovna Rada, Ukraine's parliament, came into force on July 7, 2018. It shall be put into effect, after seven-month transition period, on February 7, 2019.

Ukraine's new law on currency, forex operations comes into effect – NBU

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