Back in February 2019, the National Bank of Ukraine (NBU) adopted a number of resolutions that introduced a new regime for regulating foreign exchange transactions, which in everyday life took the form of a stable expression — “currency liberalization”.
On June 29, 2021, the NBU adopted a new Resolution No. 62, which entered into force on June 30, 2021, which continues to take further steps towards currency liberalization.
The Decree amends:
- Regulations on the structure of the foreign exchange market of Ukraine, the conditions and procedure for trading foreign currency and bank metals on the foreign exchange market of Ukraine (Resolution No. 1);
- Regulations on the implementation of operations with currency values (Resolution No. 2);
- Regulation on protection measures and determining the procedure for carrying out certain transactions in foreign currency (Decree No. 5).
Purchase and sale of foreign currency and purchase-sale-exchange of banking metals for non-cash funds
In accordance with Decree No. 62, individuals and legal entities are now allowed to carry out the following operations through banks:
- purchase by individuals, residents and non-residents, of cash in foreign currency both for cash in hryvnia and for non-cash funds in hryvnia from their own current accounts of these individuals;
- exchange of foreign currency cash of one foreign state for foreign currency cash of another state by individuals, residents and non-residents;
- sale of bank metals to banks by resident and non-resident individuals both for cash in hryvnia and for non-cash funds in hryvnia with their subsequent crediting to their own current accounts of these individuals;
- Purchase by resident and non-resident individuals of banking metals both for cash in hryvnia and for non-cash funds in hryvnia from their own current accounts of these individuals;
- purchase by legal entities of coins (banking metals) for non-cash funds in hryvnia;
- exchange by resident and non-resident individuals of one bank metal for another bank metal with physical delivery or foreign currency in cash.
In addition to banks, through non-banking institutions it is also possible to carry out operations at cash desks, currency exchange offices for the purchase of foreign currency cash by individuals and the sale of foreign currency cash by individuals for cash or without cash in hryvnia.
Investing abroad
Decree No. 62 also expands the possibilities for resident individuals to invest abroad. A resident individual may invest abroad with the participation of a resident securities trader. So, an individual makes a transfer of funds in foreign currency from his own current account in a bank to a current account (or to an account payable for securities settlements for clients of a securities trader, which is a bank) of a securities trader (opened in the same bank ) with their subsequent transfer to their intended purpose from the current (correspondent) account of a securities trader abroad or to current accounts of non-resident legal entities opened in Ukraine (except for investment accounts). At the same time, the limit of 200,000 euros must be observed.
List of exclusions for currency transactions
Decree No. 62 also expanded the list of transactions to which the limit of 2,000,000 euros does not apply when carrying out foreign exchange transactions for the purpose of carrying out economic activities by residents (legal entities and individual entrepreneurs). Therefore, the specified limit does not apply for:
- operations related to the fulfillment of obligations under guarantees, guarantees, pledges, as well as operations to reimburse funds by a resident debtor to a non-resident guarantor (guarantor) who fulfilled the obligation of a resident debtor to a non-resident creditor secured by a guarantee / surety — the exception applies if transactions related to the fulfillment of the main obligation are included in the list of transactions that are not subject to the specified limit of 2,000,000 euros;
- operations on reimbursement by a resident debtor of funds to a non-resident guarantor (guarantor) that has fulfilled the obligations of the resident debtor secured by the guarantee/surety to the resident creditor;
- operations carried out on the current (correspondent) account of a securities trader in the case when the securities trader acts on his own behalf (on behalf of an individual) on behalf and at the expense of this individual, subject to the limit of 200 000 euro.
Thus, the NBU has expanded certain opportunities for both individuals and legal entities to buy and sell currencies and coins, as well as provided new opportunities for investing abroad.
You can find the full text of Resolution No. 62 at the link: https://bank.gov.ua/ua/legislation/Resolution_29062021_62