NBU prolongs compulsory sale of 50% of foreign currency proceeds

The document enters into force on December 14 and is valid until June 13, 2018, inclusive. Now the requirement for a 50% mandatory sale will not apply to transfers from own (not purchased) customer funds, which are returned to a foreign bank.

"The NBU Board considers it necessary to leave the demand unchanged since it remains an effective tool for ensuring rhythmic supplies of foreign currency proceeds to the interbank foreign exchange market and, accordingly, it is important for forex market stability," the report says.

Read alsoUkraine's Finance Ministry borrows almost UAH 4 bln in domestic marketThe regulator noted that banks would still preliminarily credit the clients' currency receipts that are subject to compulsory sale to a separate account for their sale on the next day without the client's order.

There is also a rule that the currency bought by a client and the currency that has been returned to his/her account can be used within seven days after it is transferred by the bank. However, such receipts are subject to compulsory sale on the eighth day.

The regulator also reported that it had mitigated a number of restrictions on the currency market, which have lost effectiveness as an instrument to maintain its stability, referring to Resolution No. 128 that comes into force on December 14.

In particular, the central bank has expanded the business opportunities to early repay foreign currency loans in favor of non-residents. Now it will be possible to repay the loan with the involvement of a foreign state ahead of schedule.

In addition, the National Bank has lifted the restriction on the maximum amount of money transfers on the basis of individual licenses within the equivalent of US$ 50,000 a month. Now this limit will be regulated by the individual license.

As UNIAN reported, from April 5, the National Bank reduced from 65% to 50% the rate of compulsory sale of earnings in foreign currency by exporters.

Read alsoCentral bank's net international reserves reach almost $6.7 bln in NovThe regulator announced further easing of administrative restrictions on the currency market, established in 2014-2015 to stabilize the exchange rate of the national currency, with the proviso that full currency liberalization is possible after the entry into force of a new law on currency and the introduction of effective tax legislation in Ukraine.

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 $5,501 at the current forex rate, per day.