Publication

22.11.2018

The National Bank of Ukraine (NBU) has published the draft of regulatory documents, that will stipulate a new currency regulation

Author: Lyubov Ignatova
Source: www.dmp.com.ua

ST3A3372.jpgThe NBU on its official website published the drafts of regulatory documents on 07.11.2018, that define:
No. 1: the FX market structure and rules for trading in foreign currency and precious metals
No. 2: the procedure of foreign currency purchase and transfer within Ukraine and abroad
No. 3: cross-border movement of currency values (cash in domestic and foreign currencies, precious metals) by banks, legal entities, and individuals

These resolutions set norms of currency regulation, which will be applied when Ukraine completes its transition to free currency operations under the principle ‘everything that is not explicitly forbidden by law, is allowed’ as provided for by the Law On Currency and Currency Operations. These resolutions, as the law, will take partial effect on February 7, 2019. Until that time, the currency regulation will also be carried out partially under temporary resolutions, which will determine:
No. 5: a list of implemented safeguard measures and procedure for their application (this is a temporary anti-crisis resolution)
No. 6: other macroprudential instruments for stabilization of the money market, as well as the reporting system on debt currency operations
No. 7: the procedure for meeting the settlements deadlines, established by the NBU.

The mentioned above resolutions are currently being finalized, and their publication is scheduled within a month.

In addition, it is planned to introduce temporary resolutions that will be aimed at protecting the economy and the financial system from crisis phenomena and which will determine the general list of the safeguard measures that may be applied by the NBU, criteria and procedure for their implementation, terms of their extension and early termination (Resolution No. 4)

In general, the new currency legislation provides the following basic steps of liberalization:
• Deregulation of cross-border investment- individuals and legal entities will be able to make investments within the electronic limit, that will not require obtaining any permits during the transition period, and once the transition is complete - without any restrictions.
• The simplified procedure for household cross-border currency operations - transactions under UAH 150,000 will not require any supporting documentation and opening of bank account, and for the operations via payment cards this limit will be cancelled at all.
• The simplified procedure for foreign currency purchases in the interbank market for legal entities – the operations under UAH 150,000 will not require any supporting documentation.
• Increased opportunities to conduct operations with precious metals- the relevant specialized companies will be able to buy bank metals without any limits and allowed to import and export them across the border, also individuals will be able to conduct operations with bank metals within the limit of UAH 150,000.


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