On 28 March 2014 the National Bank of Ukraine (the
“NBU”) issued Regulation No. 172
“On Regulating of Financial Institutions’ Activities
and Performance of Currency Operations”
(“Regulation No. 172”), which replaced
the NBU Regulation No. 49 dated 06 February 2014
(“Regulation No. 49”). Regulation No.
172 will remain in effect until 01 May 2014.
Regulation No. 172 slightly softens the
restrictions, previously imposed by Regulation No. 49, and aims to
ensure the stability of the Ukrainian national currency and
sustainability of the banking system in Ukraine.
Under Regulation No. 172:
1. The rule under which legal entities and private
entrepreneurs are required to credit the relevant amount in UAH to
the bank's nominated internal (analytic) account in order to buy
foreign currency, is prolonged. However, as of 01 April 2014, the
period for which the bank must hold the relevant amount in UAH was
reduced to two business days.
2. Individuals are now allowed to sell foreign
currency up to an amount that does not exceed 150,000 UAH, without
having to present identification documents.
3. The purchase of foreign currency by
individuals is restricted to the equivalent of 15,000 UAH per one
business day within the same banking institution.
4. The 15,000 UAH per day limit for withdrawal
of foreign currency from current and deposit accounts is prolonged.
However, this restriction applies to the withdrawal of cash both
within and outside the territory of Ukraine regardless of the
number of accounts that the customer has with the same banking
5. The limitation, according to which foreign
currency deposits may only be withdrawn early in UAH at the foreign
currency sale rate of the respective servicing bank as of the day
of such withdrawal, is prolonged. The same applies to early
payments under deposit certificates nominated in foreign
6. The prohibition on early prepayment by
residents under cross-border loan agreements is broadened and
prolonged. While Regulation No. 49 only prohibited prepayment under
cross-border loan agreements through foreign currency, Regulation
No. 172 completely prohibits such early payments, including through
a company’s own foreign currency income.
7. The restriction on foreign currency
purchases for the purposes of making investments abroad and
covering part of insurance reserves by insurers is abolished.
8. An individual (resident or non-resident)
can buy foreign currency at the equivalent of up to 150,000 UAH per
month, upon providing relevant documentary evidence, exclusively
from his or her current account. An individual resident can also
buy foreign currency without relevant documentary evidence (from a
foreign currency account or otherwise) up to an amount not
exceeding 15,000 UAH per month.
9. The issuance of saving (deposit)
certificates by banks is suspended.
Legislation: Regulation of the National Bank
of Ukraine “On Regulating of Financial Institutions’
Activities and Performance of Currency Operations” No. 172
dated 28 March 2014.