National Bank of Ukraine extends deadlines for farmers to repatriate FX earning to 120 days

MOSCOW. July 10 (Interfax) - The National Bank of Ukraine has extended the deadline for repatriating foreign currency earnings for certain agricultural products, including wheat and rye, from 90 to 120 days, Ukrainian media quoted Daniil Getmantsev, head of the parliament's committee for finances and tax and customs policy, as saying on social media on Wednesday.

"I welcome the National Bank's decision to increase the deadline for repatriating foreign currency earnings for agricultural products to 120 days. This long-overdue decision will significantly support our exporters who are reorienting to the Asian and African markets," he said.

This information has yet to appear on the National Bank's website.

The Ukrainian government on June 21 recommended that the National Bank increase the period for repatriating FX to 120 days for certain agricultural products, including wheat and rye, as the period was cut from 180 to 90 days. National Bank Governor Andrei Pyshny said on July 4 that the regulator was "leaning towards this, analyzing the problems arising for farmers."

The National Bank had earlier disregarded numerous requests and remained opposed to the longer period for repatriation of FX earnings in various sectors, while proposing a longer list of goods with a reduced deadline.

After the period for repatriating FX earnings was cut from 180 to 90 days for agricultural products in November 2023, the balance of receipts in transactions with non-residents turned positive in the first quarter of 2024 and averaged $134 million per month, Pyshny said. The balance was negative, about $1.3 billion per month, in the second half of 2023.