REUTERS
The National Bank of Ukraine (NBU) has simplified forex settlements for goods imports by businesses, having canceled the mandatory use of letters of credit in advance payments in foreign currency for goods whose total value exceeds $5 million, according to an NBU announcement on its website, referring to Resolution No. 118, effective as of November 23.
Thus, advance payments in such cases can be handled without the use of letters of credit, it said.
The new simplified procedure for advance payments under foreign trade agreements is expected to boost foreign trade without exerting additional pressure on the forex market, according to the regulator's estimates.
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According to the regulator, a number of steps on currency regulation liberalization are possible immediately after the entry into force of a new law on currency. However, full liberalization is possible only after the introduction of effective tax legislation.
Today, a number of NBU restrictions are still being applied to citizens and businesses, including the compulsory sale of 50% of currency proceeds, the advance transfer of hryvnias to buy foreign currency at the request of customers, and limitation on the purchase of cash currency by individuals in the equivalent of UAH 150,000, or U.S.$5,585 at the current forex rate, per day.