Policy Progress: Chamber Welcomes Further Liberalization of Foreign Currency Market

The Chamber welcomes the initiative of the National Bank of Ukraine (NBU) to continue the gradual liberalization of foreign currency market regulations. The Chamber is continuously advocating for relaxing of the foreign currency control measures, in particular, during the high-level meetings with the President of Ukraine, Prime Minister of Ukraine, Governor of the National Bank of Ukraine, First Vice Prime Minister - Minister of Economic Development and Trade of Ukraine as well as addressed responsible stakeholders with the respective Position Papers.

Such NBU steps were taken via approval of NBU Resolution #361 dated July 28, 2016 "On Amendments to Some Legislative Acts of the National Bank of Ukraine" which introduces the following changes: 

   • The deadline for settlements of exports and imports of goods is extended from 90 days to 120 days;

   • The conditions of payments for import contracts of clients, including advance payments, were eased. So far banks have used only letter of credit if the payment amount exceeds 500 000 USD. Now this requirement will be only for payments that exceeds 1 mln USD.

We welcome this positive step in the right direction, though there are still a number of steps to be taken on the way to fully liberalize the currency market and ease the administrative restrictions. The Chamber will take every single effort for achieving mentioned steps and ensuring their effective implementation.