REUTERS
The National Bank of Ukraine has eased the requirements for banks on the interbank currency market by increasing fivefold the maximum volume of purchases of foreign currency and bank metals for hryvnias – from 0.1% of the size of the bank’s regulatory capital up to 0.5%, as reported on the NBU website, with reference to Resolution No.7, which comes into force on February 9.
The move will expand the banks’ opportunities to manage its foreign currency position, according to the NBU estimates, as contribute to a more active market trading and independent search for an exchange equilibrium.
"This is a fairly balanced step that will not have negative consequences for the currency market," the report says.
Read alsoUkraine's international reserves shrink to $15.45 bln – NBUAccording to the concept of a new model of currency regulation, submitted in December 2016, the NBU had planned in the first phase of forex liberalization to ease restrictions on the export-import transactions and foreign direct investment.
Among other things, the regulator announced the gradual abolition of compulsory sale of forex earnings, limitations on the timing of payments on export-import contracts and restrictions on the maximum amount of the import contract prepayment. The NBU also planned to simplify the licensing of investment in support of Ukrainian exports and cancel the repatriation of the proceeds from the termination of participation in the capital.
Read alsoNBU releases 2-year inflation forecastFor individuals, the regulator has announced the abolition of restrictions on the purchase of foreign currency in cash, currently set at a rate equivalent to UAH 12,000 per day, as well as on the withdrawal of foreign currency from the accounts – now enforced in the equivalent of UAH 250,000 per day.