NBU eases forex market restrictions for individuals
The National Bank of Ukraine (NBU) has eased administrative restrictions on the foreign exchange market concerning individuals, which were introduced in 2014-2015 to stabilize the national currency.
Resolution No. 386, published on the regulator’s website, comes into force on September 15 and is valid until December 15, 2016, inclusive.
The NBU says the relaxation of measures will not lead to increasing volatility on the interbank foreign exchange market, adding that it will continue the gradual liberalization of currency regulations taking into account the situation on credit and currency markets, as well as the Ukrainian economy as a whole.
At the same time, the NBU has extended the number of restrictions on the foreign exchange market for another three months, including the previously set limit on purchases of currency by individuals within an equivalent of UAH 12,000 per day.
Read alsoUkraine sees 3rd consecutive month of deflationThe regulator notes that it has previously prohibited the transfer of foreign currency under individual foreign exchange licenses to individuals, including for investing abroad, with a view of preventing unproductive capital outflows.
"Since the NBU does not consider these investments favorable to the development of the economy, unlike inflows of foreign direct investment, it has decided to suspend the issuance of such licenses," the regulator said.
As UNIAN reported earlier, the National Bank of Ukraine announced the easing of administrative restrictions on the foreign exchange market this year.
Since August 10, the hryvnia exchange rate against the dollar has been gradually decreasing by 5-10 kopecks daily, exceeding 25 UAH/USD, as compared to a level of 24.7-24.9 UAH/USD during the previous two months. The situation improved after the announcement of the International Monetary Fund, Ukraine's key creditor, that the Fund would consider Ukraine issue during a meeting of the IMF Executive Directors on September 14. The Ukrainian national currency has strengthened.
Read alsoCentral Bank assures forex market under full controlThe regulator said the situation on the currency market in Ukraine has stabilized. In particular, the NBU reported the excess of foreign currency supply over demand on the interbank foreign exchange market on September 13, and for the first time since August 9 it bought $19.7 million worth of currency, after holding seven currency auctions in August-September to sell currency to support the hryvnia. It is reported that during the auctions the regulator has sold $200 million worth of foreign currency.