The National Bank of Ukraine has canceled the compulsory sale of foreign currency for foreign investment.
According to the new decision of the NBU, the currency flowing into the country for foreign investment is exempt from compulsory sale which was another step towards mitigating the crisis in the currency market restrictions imposed in the years 2014-2015.
The corresponding decree NBU №308 enter into force on 11 May.
In addition, the document states that the term of the authorized banks booking hryvnia funds to purchase foreign currency on behalf of clients is reduced to 1 day. This means that it will be possible to buy currency trading day on the third (T+ mode 2). The time limit for operations to transfer funds in the national currency on correspondent accounts with non-resident banks will also be reduced.
However, according to the NBU, such operations will be carried out only with the permission of the regulator within the specified period in order to prevent non-productive capital outflows (2 working days).
The new decree NBU also overturned a ban on the purchase of foreign currency to pay for the products imported to Ukraine prior to 1 January 2015, under agreements with the replacement of the debtor and/or creditor. Cancel touched and prohibition to transfer funds in the national currency in favor of non-residents through the correspondent account of the non-resident bank, opened with an authorized bank.
NBU expects the expense of these measures to stimulate the increase of foreign investment in Ukraine, as well as create favorable conditions for the settlement in the area of foreign trade activities, without leading to imbalances in the currency market.
The National Bank intends to continue further easing of administrative restrictions on the foreign exchange market after the resumption of cooperation with the International Monetary Fund. One of the next steps will be the lifting of the ban on repatriation of dividends on the results of evaluation of their volumes.
