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.
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).