The National Bank of Ukraine Eases FX Restrictions on Foreign Trade Operations
First, the NBU has exempted FX receipts from nonresidents from surrender requirements if these funds are received as a security deposit (collateral, deposit, guarantee) that serve as a guarantee of the nonresident’s participation in an auction (bidding) conducted by a resident.
Second, the regulator allowed banks that purchase foreign currency for their customers not to include FX amounts received as a security deposit from a non-resident in the residents’ FX account balances.
These steps would help boost sales of Ukrainian products to nonresidents by making the procurement procedure easier for both state-owned enterprises and all economic agents.
Third, the NBU allowed banks to purchase foreign currency for their customers if the total FX amount held in the client’s account does not exceed the equivalent of USD 100,000. Until recently, FX purchases were allowed if the client’s total FX holdings were less than USD 25,000.