National Bank of Ukraine allows up to UAH 100,000 in monthly quasi cash purchases, P2P transfers abroad by individuals

KYIV. April 21 (Interfax-Ukraine) - The National Bank of Ukraine has allowed individuals to purchase assets directly converted into cash in what are deemed to be quasi cash transactions for the equivalent of up to UAH 100,000 per month with their own foreign currency, the regulator's press office said.

The changes were approved by the National Bank Resolution No. 78 of April 21, which is published on the NBU website and has already entered into effect.

The same resolution allows individuals to make up P2P transfers of up to UAH 100,000 abroad from foreign currency accounts opened with banks in order to support forced migrants from Ukraine.

However, quasi cash transactions from foreign currency accounts opened with banks are still temporarily prohibited.

The NBU said the changes would help improve the currency market situation in order to relax the restriction going forward, and to reduce pressure on Ukraine's international reserves.

It said net FX transfers by Ukrainian banks in favor of international payment systems totaled $1.7 billion in March and $900 million in the first 18 days of April.

"The need for settlements with international payment systems arises due partly to the use of payment cards to pay for quasi cash transactions. They are mainly carried out to circumvent existing NBU restrictions, in particular for investing abroad, which is prohibited under martial law," the regulator said.

It said the changes did not affect the use of payment cards abroad and in Ukraine to pay for goods and services.

Quasi-cash transactions include topping up e-wallets, brokerage or forex accounts and purchases of virtual assets.