NBU removes currency exchange rate restrictions

20 May, 07:44 PM
NBU (Photo:NBU / Flickr)

NBU (Photo:NBU / Flickr)

Ukrainian banks can once again sell foreign currency at any exchange rates they choose, the National Bank of Ukraine (NBU) said on May 21.

The central bank froze commercial bank exchange rates at the start of the full-scale Russian invasion, forbidding them from deviating from the official exchange rate of UAH 30 to $1 by more than 10%.

Similarly, all restrictions have been lifted from the exchange rate Ukrainian banks use when processing purchases made by their clients abroad.

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“The lifting of the restrictions on exchange rates, used by banks to sell currency to individuals, will be a boon for every legitimate player in the market,” said deputy head of NBU Yuriy Heletiy.

“It will foster competition, improve liquidity, and reduce the volume of the grey market. All this will stabilize the currency market and reduce the volatility of its cash segment.”

At the same time, the monthly limit on cash withdrawals from hryvnia-de-nominated accounts of Ukrainian banks abroad was temporarily lowered from UAH 100,000 ($3,382) to UAH 50,000 ($1,691).

“This will protect Ukraine’s forex reserves by reducing the risks of counterproductive capital outflows, taming speculatory operations, and limiting efforts to circumvent regulatory restrictions,” the NBU said.

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