You're reading: Limitation of cash transactions to bring economy out of shadows more easily, bankers say

The restriction of cash transactions to the amount of Hr 150,000 will make it easier to bring the economy out of the shadows and aid the stability of the hryvnia exchange rate, according to bankers polled by Interfax-Ukraine.

“This decision is another step by the NBU to buildin a more
transparent financial market,” Deputy Board Chairman at Bank Finance and
Credit Viktor Holub said.

Ukrsotsbank Analyst Tanteli Ratuvukheri said he believes that the
restriction of cash payments will support the exchange rate of the
hryvnia.

“This decision might slightly help in balancing the financial and
primarily money market. Specifically, it could further stabilize the
foreign exchange market, the hryvnia exchange rate. This, in turn, could
have a positive impact on the flow of funds on bank deposits, and help
cash stay in the banks longer,” said the analyst.

Director of the department for card business at VAB Bank Yulia
Morozova said she believes that this decision will give impetus to the
development of non-cash payments.

“The introduction of this restriction will promote the growth of
cashless payments, as well as have a positive impact on the market of
non-cash payments and allow them to be transferred, first of all, to the
purchase of luxury goods, property and vehicles of the middle class and
higher,” she said.

The expert said the restriction of cash payments would facilitate an
increase in the banks’ commission income due to the increased turnover
of non-cash payments and the increase in the yield from shares issues
and acquisitions through increasing the average sum of trade operations.