20 May 2022 20:01

National Bank of Ukraine lifts limit on deviations of 'we sell' currency exchange rates

KYIV. May 20 (Interfax-Ukraine) - The National Bank of Ukraine (NBU) has lifted the restriction, beginning on May 21, according to which authorized financial institutions were prohibited from selling any foreign currency in cash to customers with a deviation from the official exchange rate of more than 10%, the NBU press service said on Friday.

The amendments have been adopted under NBU Resolution 102 dated May 20, which was published on the Ukrainian central bank's website and effective on May 21.

This resolution also cancels similar restrictions concerning forex exchange rates used by lenders when writing off hryvnias spent by their customers if such customers pay by bankcards linked to their hryvnia-denominated accounts abroad.

"The abrogation of restrictions concerning rates at which banks may offer foreign exchange to the public, will improve the working conditions of legal market agents. This will help boost competition, increase the liquidity of the legal segment and curb the scope of illegal transactions. All of this will make the foreign exchange market more stable and will help reduce the range of exchange rate fluctuations in the market's cash segment," the NBU press service quoted Deputy Governor Yuriy Heletiy as saying.