Currency regulation in new ways: the NBU has published the draft regulations


 Валютное регулирование по-новому: НБУ обнародовал проекты постановлений

As previously announced, the national Bank of Ukraine published for public discussion, three of the seven projects of normative-legal acts. To public discussion of the normative-legal acts, which will be the basis for a fundamentally new liberal and transparent system of currency regulation under the Law of Ukraine “On foreign currency and foreign currency transactions.”

In September, the national Bank presented the draft structure of currency regulation, which will consist of seven new key legislative acts:

  • No. 1: structure of foreign exchange market and the rules of trade in foreign currency and Bank metals;
  • No. 2: settlement procedure of transactions for the purchase and transfer of foreign currency on the territory of Ukraine and abroad;
  • No. 3: transboundary movement of cash in national and foreign currency, banking metals, as well as securities in certificated form banks, legal entities and individuals;
  • No. 4: General list of protection measures for possible application by the National Bank, the criteria and the procedure for their administration, the conditions for their renewal and early termination;
  • No. 5: list of measures of protection and their application (anti-crisis decree, is temporary in nature);
  • No. 6: other tools to stabilize the monetary market (reserve for foreign exchange transactions), as well as a notification system to gather information on currency operations;
  • No. 7: compliance with deadlines of the payments, established by the National Bank.


 Валютное регулирование по-новому: НБУ обнародовал проекты постановлений

Three of these regulations — No. 1, No. 2 and No. 3 — define the norms of currency regulation that will be applied when Ukraine will fully switch to the freedom of foreign exchange transactions on the principle “everything is permitted that is not expressly prohibited by law”, as envisaged by the Law “On foreign currency and foreign currency transactions.” Like the Law, these documents are partly earned from February 7, 2019 and in full force under favourable macroeconomic conditions, and after that will be permanent. By the time of the currency regulation will also be partially carried out in the framework of the provisional regulations No. 5, No. 6 and No. 7.

Moreover, temporary legislation will be introduced to protect the economy and financial system from crises, in cases where macro-financial situation will meet the criteria in which should be involved protection measures (resolution No. 4). However, after restoring macro-financial stability temporary acts to terminate, and currency regulation will continue to be in accordance with constant acts.


 Валютное регулирование по-новому: НБУ обнародовал проекты постановлений

Overall, the proposed new currency regulation contains the following novelties:

  • Deregulation of investment abroad. Business and population, which is now forced to get licenses for investment abroad, will be able during a transition period to implement them in the framework of the electronic limit, which would not require obtaining any permits and, subsequently, without any restrictions.
  • Facilitate cross-border operations of the population with currency. In particular, the place of exchange controls when making payments abroad is ex-post supervision of foreign exchange transactions. Operations in the amount of 150 thousand UAH will not require documentary support, and oversight of operations in excess of this amount will be simplified.

Individuals increased the limit for transfers abroad without account opening and documents — from 15 thousand UAH to the amount that is determined by the scfm (currently 150 thousand UAH), and for operations using payment cards in General this limit will be cancelled.

In addition, against mail individuals, instead of the current limit of 300 euros, will operate the General rules of moving through customs border, which are now set a limit of 10 thousand euros.

  • The expansion of the list of currency transactions available to customers of banks. The latter will receive the ability to pay for foreign currency government bonds in the national currency and in foreign currency, and to conduct operations with currency swaps. In both cases — if the other party is a Bank. In addition, they will be able not only to buy and sell and convert to cash via terminals and other software and hardware banks.
  • Simplification of procedure of purchase of currency in the interbank market for Bank customers. So, the amount up to UAH 150 thousand will not require legal entities of documentary evidence that they must provide now. In the future this approach will be extended to all operations of the customers of banks to purchase foreign currency on the interbank market.
  • Empowerment to conduct operations with precious metals. The company’s specialization will be able to buy precious metals without restrictions and will have the right to import-export abroad (now is the right to have only banks).

In turn, individuals will be able to conduct operations with banking metals within the limit of the scfm that is valid for foreign currency transactions (now within 150 thousand UAH), but further restrictions will be completely abolished and for them.

Published the first three, permanent, normative-legal acts, which aim to realize a free implementation of currency transactions. To read the draft resolutions of the links:

No. 1: structure of foreign exchange market and the rules of trade in foreign currency and Bank metals;

No. 2: settlement procedure of transactions for the purchase and transfer of foreign currency on the territory of Ukraine and abroad;

No. 3: transboundary movement of cash in national and foreign currency, banking metals, as well as securities in certificated form banks, corporations and individuals.

Projects are temporary judgments — No. 5, No. 6 and No. 7 national Bank is finalizing and also plans to publish for public comment within a month.

Recall that the national Bank has issued a draft structure of the currency regulation, which will enter into force with the enactment of the Law of Ukraine “On currency and foreign exchange operations,” February 7, 2019. Related materials the Deputy Chairman of the National Bank Oleg Churiy and specialists of the Department of open markets, the national Bank presented the Bank and the expert community and noted that in contrast to the confusing current base 56 of normative legal acts in the sphere of currency regulation, the new NPA will be simple, clear and accessible.

It should be noted, the experts are unanimous in their conclusions that currency liberalization for business will only be possible after the introduction in Ukraine of the tax system on the basis of the BEPS Plan, because it is an important precondition for financial stability.

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