The National Bank of Ukraine has issued a clarification of its exchange rate policy, cementing the tough rules already being widely applied. While previously personal indentification and data collection was needed for transactions exceeding Hr 50,000 ($6,000), now the procedure will cover any exchange deals.
According to the new NBU regulation, a document identifying the client
is required and banks have to make a copy of it. In practice, this means the
first two pages of an internal or foreign passport for Ukrainians, or a
passport or residency permit for foreigners. The copies have to be sealed and
kept in a bank, no matter how big is the sum of the operation. A copy of the
tax identification number is also required for operations above Hr 150,000.
Banks started gathering personal data of the clients for currency
exchange operations in 2011 following the NBU regulation that required banks to
collect information identifying the person.
The new rules were meant to prevent the
expansion of the currency exchange to the
shadow market, with experts also noting the NBU’s desire to reduce devaluation pressures on the hryvnia. This was notably visible in last
year’s legislation requiring mandatory surrender of half of exporters foreign
currency earnings, as well as the NBU’s push for a 15 percent social tax on the
purchase of hryvnias for foreign denominations (it failed to pass parliament,
though a watered down, 10 percent version is still in the pipeline).
Ukrainians bought $10 billion of foreign coin in 2012, 24 percent less
than in 2011, according to NBU. Nonetheless, this still depleted Ukraine’s
international reserves by a quarter, though the sharp decline was halted in
January this year, with reserves edging back up $0.1 billion.
On the flip side, Ukraine entered 2013 in recession with gross domestic
product falling 2.7 percent in the last three months of 2012, for a second
consecutive quarter. This has taken its toll on the budget, which remains
strained despite catching a breather with last week’s Eurobond deal – Ukraine’s
cheapest for a long time. As a result, experts claim, a new agreement with the
International Monetary Fund is still crucial for the state finances. According
to Serhiy Arbuzov, the former central bank head and deputy prime minister, the
country expects a new $15 billion loan from the IMF this year.
Kyiv Post staff writer
Anastasia Forina can be reached at [email protected]
