You're reading: NBU bans purchase of cash foreign currency worth more than Hr 15,000 per customer

The National Bank of Ukraine (NBU) has banned the purchase per customer of cash foreign currency worth more than the equivalent of HR 15,000.

The decision is stipulated in NBU resolution No. 172, which took effect on March 28 and it is in effect until May 1, 2014.

“Taking into account the increased demand for cash foreign currency, the maximum sum of its sale to one individual is set, which cannot exceed the equivalent of Hr 15,000 during one working day at one bank,” reads a posting on the NBU’s Web site.

According to the report, the decision was made in response to the tense situation on the monetary and credit market.

“The package of temporary measures foreseen in resolution No. 172 aims at promoting the support of the balance on the monetary-credit market in the period until the programs on cooperation with international financial organizations are approved,” the central bank said.

According to the report, resolution No. 49, which set temporary restrictions, is declared invalid.

According to the central bank, resolution No. 172 foresees the retaining of some regulatory measures stipulated in resolution No. 49, with the simultaneous relaxation of some other restrictions.

According to the report, the liberalization of a procedure for settling transactions on the interbank currency market in Ukraine is foreseen: banks can carry out foreign currency transactions not only on TOD, TOM and Spot conditions, but also on Swap and Forward conditions (all transactions only concern the supply of foreign currency).

In addition, a ban on the purchase of foreign currency to invest abroad by residents and to cover a part of insurance reserves by insurers is canceled.

The document also cuts the term for settling transactions on the purchase of foreign currency by banks under an order of companies, individual businessmen and foreign representative offices.

“Starting from March 28, 2014, the funds for the purpose of buying foreign currency could be sent to a separate analytical account no earlier than the third working day (from March 25, 2014 – no earlier than the fourth working day) and from April 1, 2014 – no earlier than the second working day after the funds are sent to the account,” reads the report.

According to the NBU, banks are exempted from the liability to form and send registers on foreign currency purchased to the NBU’s territorial departments.

The central bank also relaxed the procedure for buying cash foreign currency by individuals: now it is permitted for banks to buy cash foreign currency individuals having to present ID and without making a copy of it.

Restrictions on money transfers in foreign currency sent from Ukraine by individuals regarding the current foreign currency non-trade transactions are introduced.

“Transactions worth no more than Hr 150,000 a month can be carried out. The restrictions do not apply to socially important money transfers: payment for treatment abroad, transportation of patients, money transfers if the state of residence is changed, money transfers linked to payment of wages to nonresidents and some other money transfers,” reads the report.

According to the report, residents are permitted to repay credits, loans (financial aid) in foreign currency under agreements if supplementary agreements are signed with nonresidents no earlier than the term foreseen in the agreement.

Banks are instructed to suspend the issue of new saving (deposit) certificates for the period when resolution No. 172 is in effect, and the banks are to repay on the said certificates issued only via sending funds to the account of the owners of certificates or the account of the bearers.