NBU lifts restrictions on purchase of foreign currency

Individuals in Ukraine will be able to buy foreign currency and precious metals without any restrictions on the amount, the National Bank of Ukraine (NBU) has reported on its website.
"Continuing currency liberalization, the National Bank lifts restrictions on the purchase of foreign currency and precious metals by individuals in the equivalent of UAH 150,000 per day through the cash desk of a bank, a financial institution or via online banking systems. The requirement on the submission by individuals to banks of documents confirming the grounds for carrying out transactions on the purchase of non-cash foreign currency is also terminated," the report reads.

The NBU said that such a weakening would not have a significant impact on the foreign exchange market.

First, the vast majority of individuals' foreign currency transactions do not exceed amounts higher than UAH 150,000. Secondly, the total volume of purchases and sales of foreign currency by the public today is commensurate.

At the same time, net purchases of foreign currency by the NBU in the interbank foreign exchange market, due to excess supply from business and investors, reach almost $4 billion this year, whereas international reserves have been kept at $21-22 billion in recent months.

According to the NBU, the liberalization of currency legislation and the strengthening of macro-financial stability made it possible to lift more than 30 currency restrictions this year, including for the population.

"The National Bank will continue currency liberalization in line with the pace of improving macroeconomic conditions and taking into account the speed of adoption and implementation of a package of laws aimed at preventing unproductive capital outflow from the country," the report said.