NBU removes all limitations on banks and financial companies to sell foreign currency to public in cash

MOSCOW. Dec 1 (Interfax) - The National Bank of Ukraine (NBU) announced the abolition as of December 1 of this year of all restrictions on the sale of cash foreign currency by banks and non-bank financial institutions to the public in order to level the spread between cash and non-cash rates.

"According to NBU estimates, this will help minimize the difference between cash and non-cash rates and, as a result, stabilize exchange rate expectations and increase the stability of the foreign exchange market," Ukrainian media reported, citing a statement on the NBU website.

Among the innovations is the expansion of the list of services that can be paid for using cross-border transfers, including for the treatment of military personnel outside the country and for the education of students abroad.

Starting December 1, the Export Credit Agency (ECA) will be able to transfer funds abroad to reimburse expenses under insurance and reinsurance contracts concluded with foreign insurance companies, as well as pay ECA expenses associated with these transactions. This was done to ensure the safety of navigation, sea transportation, and export of products through Ukrainian ports.

The new rules were introduced in a resolution from the NBU board on November 30 this year. "The National Bank of Ukraine continues to ease currency restrictions, taking into account the needs of maintaining macro-financial stability, protecting international reserves, and ensuring the priority needs of defense, the economy and citizens," the regulator said.

As reported, as of September 16, 2023, the NBU started allowing banks and non-bank financial institutions to additionally sell cash currency in the amount of its balances as of April 13, 2022 with the similar goal of levelling the difference between the cash and non-cash exchange rates.

The official exchange rate as of December 1 is 36.35 UAH/$1.