THE NATIONAL BANK OF UKRAINE CONTINUES LIBERALIZATION OF THE CURRENCY MARKET REGULATION
LEGAL ALERT - ARZINGER law firm,
Kyiv, Ukraine, Fri, May 06, 2016
On May 5, 2016 the NBU passed the Resolution No. 308 "On amendments to some regulations of the NBU" (hereinafter - the "Resolution No. 308") which implements the following liberalization of certain restrictions on the foreign currency market:
– Proceeds transferred from abroad for the purpose of investing in Ukraine are no longer subject to mandatory exchange for UAH.
– The term of the UAH funds' reserving by authorized banks for the purchase of foreign currency on behalf of clients has been reduced. To this day banks were able to purchase foreign currency for clients not earlier than on the fourth operating day after reserving (T+3). Starting from May 11, 2016 purchasing of foreign currency can be carried out on the third operating day (T+2).
– Similar amendments have been implemented in respect of transactions involving transferring of funds in UAH to correspondent accounts of non-resident banks. At the same time such transactions are still subject to the approval of the NBU with the view to prevent capital outflow.
– A ban on the purchase of foreign currency for payment for products imported to Ukraine by January 1, 2015 under contracts in which the replacement of a debtor or a creditor took place, has been removed.
– The abovementioned ban has been also withdrawn with regard to transferring of funds in UAH to non-residents via correspondent accounts of foreign banks opened with Ukrainian banks.
The Resolution No. 308 becomes effective on May 11, 2016 and will remain in force till June 8, 2016.
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