NBU halves limit on cash withdrawals abroad to 50,000 hryvni

KYIV. May 20 (Interfax-Ukraine) - The National Bank of Ukraine (NBU) has lowered the monthly limit on cash withdrawals abroad from Ukrainian bank accounts in the national currency from 100,000 hryvni down to 50,000 hrivni, the regulator stated on Friday.

The change was made in compliance with the NBU board resolution published on the central bank's website, with effect from May 21.

The move will reduce the risk of unproductive capital outflow, decrease the potential for speculation and bypassing currency restrictions, and consequently protect Ukraine's international reserves, the regulator said.

At the same time, holders of Ukrainian bank accounts may continue to withdraw cash abroad within the daily limit of 100,000 hryvni, the NBU said.

The change will not affect the use of payment cards for paying for goods and services; most transactions of this type can continue without limits.

The NBU resolution also bans banks from transactions which violate or facilitate the violation of restrictions imposed by the central bank.

Furthermore, banks are temporarily banned from money transfers for lending to non-residents (except financial institutions), business lending in the national currency in order to repay loans in a foreign currency, and switching loan contracts with legal persons (except banks) from a foreign currency to hryvnia.

The changes are also meant to preserve adequate levels of the country's gold reserves, the regulator said.