REUTERS
The move has become the third major step towards liberalization on Ukraine's forex market in the last three weeks.
The National Bank of Ukraine (NBU), within regular easing of restrictions on the forex market for businesses, has completely canceled the limit on repatriation of dividends, which was set at EUR 12 million per month.
Read alsoUkraine central bank may ease curbs on repatriating dividends, governor says: Reuters
"On July 10, businesses with foreign capital are no longer subject to the limit of EUR 12 million per one legal entity on transferring dividends abroad or to nonresident accounts in Ukraine," the regulator said on its website, referring to NBU Resolution No. 91 that comes into effect on July 10, 2019.
The regulator expects the currency easing will not have any adverse impact on the macroeconomic stability, but will improve the country's investment climate.
According to the regulator, businesses in the first half of 2019 transferred abroad dividends worth US$1.27 billion, whereof $1.07 billion at the account of purchased currency. The value of purchased and transferred currency in 2019 is respectively by 14% and 20% lower year-over-year, and at present account for only 4% of the total forex demand of bank customers.
Cancelling the limit on repatriation of dividends has become the third major step towards liberalization on Ukraine's forex market in the last three weeks. Previously, the NBU cancelled the foreign currency surrender requirement and the limit on funding foreign representative offices of Ukrainian businesses.
"In general, since the beginning of the year, the NBU has cancelled over 30 forex market restrictions. Currency liberalization will continue to respond to the positive developments of the macroeconomic situation. The ultimate goal is the free flow of capital," the regulator added.
UNIAN memo. The law of Ukraine on currency and currency operations, which lifted about 30 restrictions on the country's forex market, came into effect on February 7. The law extended the period of settlements under export-import contracts and allowed legal entities to freely use their foreign accounts while non-residents were allowed to use accounts in Ukrainian banks.