REUTERS
The decision was taken to support the stability of the currency market in Ukraine.
The National Bank of Ukraine (NBU) has extended the norm on a compulsory sale of 50% of foreign currency earnings of legal entities until February 6, 2019, inclusive, or until the Law of Ukraine "On Currency and Currency Transactions" comes into force.
The decision was taken to support the stability of the forex market in Ukraine, according to the NBU website, referring to Resolution No.138.
The regulator says that earnings in the currency of the 1st classifier group, those in bank metals, and in Russian rubles are all subject for sale.
The sale will be carried out without the client's instructions and exclusively on the next business day after receipts appear in a distribution account.
The NBU also added that another stage of foreign exchange mitigation would start from February 7, 2019. This will involve deregulation of investments abroad, simplification of cross-border currency transactions for the population, and purchase of currency in the interbank market for bank clients.
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UNIAN memo. the 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 a seven-month transition period starting from the said date.
The enactment of the law involves a series of steps to mitigate currency regulation in Ukraine, including extending the maximum settlement time limit for export-import contracts to 365 days, abolishing the currency control for export-import operations worth up to UAH 150,000 (US$5,394), and individual currency licenses.
Moreover, sanctions in the form of a ban on conducting foreign economic activities for breach of settlement dates will be lifted, while individuals will be allowed to purchase currency online.