In Ukraine came into force the law on currency and foreign exchange transactions

A new system of currency regulation approved by the resolutions of the National Bank of Ukraine provides for a number of relief measures in the foreign exchange market.

В Україні набув чинності закон про валюту і валютні операції

The law “On currency and currency operations”, which will replace the decree of the Cabinet of Ministers of 1993 on currency control, which came into force on 7 February 2019, informs Rus.Media.

In General, February 7, will be enacted over 20 exemptions:

  • a twofold increase in the ultimate settlement terms of export-import contracts of 365 days;
  • cancelled currency and oversight of export-import operations up to 150 thousand UAH;
  • allowed the free use of accounts of legal entities (except for operations on transfer of funds to such accounts);
  • canceled individual licenses for currency transactions – they will replace the e-limits (2 million euros per year for legal persons, 50 million euros per year for individuals);
  • canceled sanctions in the form of suspension of foreign economic activity for violation of settlement terms;
  • abolished restrictions on early repayment of external obligations;
  • allowed the conclusion of forward exchange transactions to hedge import-export and debt transactions;
  • allowed operations on accounts of legal entities-non-residents in banks of Ukraine;
  • cancelled the procedure of registration of foreign borrowing;
  • allowed online purchase of foreign currency by individuals (within the limit of purchase of cash currency, to UAH 150 thousand/day equivalent);
  • allowed banks to sell their customers government securities denominated in foreign currency, for foreign currency;
  • allowed banks to enter into currency swaps with resident and non-residents;
  • allowed unlimited investment banks in securities investment grade;
  • increases the limit on transfers of foreign currency abroad without account opening for physical persons – from 15 to 150 thousand UAH per year;
  • increases the limit on the purchase of precious metals by individuals and legal entities from 3.21 ounces / week (100 g) to the equivalent of 150 thousand UAH per day (without restriction to the legal entities which conduct activities involving the use of Bank metals);
  • allowed to legal entities, the import-export of precious metals, if it is in their Charter;
  • residents are allowed to make foreign currency payments for life insurance;
  • allowed to invest and lend to residents of LORO accounts in rubles of the Bank-non-resident;
  • banks-non-residents allowed to buy foreign currency for the full amount of the balance in UAH on the accounts of LORO;
  • allowed to acquire and accumulate foreign currency on account of payments on foreign borrowings;
  • is cancelled double control over operations to export products and foreign exchange supervision will carry out only one Bank, which received information about the corresponding customs Declaration;
  • permitted investment in Ukraine in currencies other than the rst and the second group of the classifier of currencies;
  • unified movement of currency values across the border.

In addition, the national Bank decided to reduce March 1, the norm of obligatory sale of currency by exporters from 50% to 30% is allowed from 7 Feb the repatriation of dividends and from February 7 abolished the requirement of prior reserve currency (T+1).