NBU tightens conditions for foreign currency purchases by businesses and FX export supervision

MOSCOW. Feb 21 (Interfax) - The National Bank of Ukraine (NBU) has deprived businesses of the opportunity to buy more foreign currency on the market by temporarily selling their available currency to banks on swap terms.

Ukrainian media reported, quoting information on the regulator's website, that when deciding whether to sell currency to clients, banks will now take into account not only the FX funds on a client's current and deposit accounts, but also information about the client's pending FX swaps with banks under which the client has already carried out an FX payment to a bank.

In addition, in a bid to encourage the repatriation of FX export revenue, the National Bank, banned banks from ending FX supervision beyond the deadlines for settlements on export transactions if funds from a non-resident were received in hryvnia.

"Starting February 21, banks will be able to complete currency supervision on relevant transactions only if funds from a non-resident were received in a foreign currency. Transfers in hryvnia will not be grounds for a bank to complete currency supervision," the regulator said.

The NBU decided to optimize these FX restrictions to prevent unproductive capital outflow for the protection of international reserves and to maintain currency market stability.

In addition, the National Bank banned paying for lotteries using Ukrainian cards abroad.

The changes were ushered in by a resolution of the NBU executive board dated February 20, 2024 that amends an earlier resolution of February 24, 2022 and which went into force on February 21, 2024.