The National Bank of Ukraine (NBU) continues to ease currency restrictions considering the needs of maintaining macro-financial stability, protecting international reserves, ensuring the priority needs of defense, economy, and citizens, as well as suggestions from financial market entities that provide these priority needs.
Guided by the above, the NBU has amended paragraph 12 of NBU Resolution No. 18 “On the Operation of the Banking System During the Wartime Laws” dated 24 February 2022 (Regulation 18). These amendments remove all restrictions for banks and non-banking financial institutions on the volumes of cash foreign currency sales to individuals.
Prior to these changes, banks and non-banking financial institutions had the right to sell currency to individuals in Ukraine within the limits of daily turnover at the cash desk.
The NBU expects that this will help minimise the difference between cash and non-cash exchange rates and, as a result, stabilise exchange rate expectations and increase the resilience of the foreign exchange market.
In addition, by other changes to Regulation 18, NBU has implemented several measures to support international transactions under current conditions. Firstly, the Export Credit Agency is now allowed to transfer funds abroad for reimbursing expenses under insurance and reinsurance contracts with foreign insurers and for covering its own operational costs. This aims to ensure the safety of shipping and stability of maritime transport during the ongoing conflict facilitating steady export through Ukrainian ports. Further, the list of services for which citizens including combatants requiring treatment or health recovery abroad due to the conflict can make cross-border transfers has been expanded. This list now includes additional services integral to the treatment/rehabilitation process in foreign medical institutions. Lastly, payments for services necessary for students studying abroad, such as accommodation, visa fees, transportation, food, insurance and emergency medical services have been authorised.
Above changes will come into effect today 1 December 2023.