NBU relaxes conditions for purchase of foreign currency for some transactions

The National Bank of Ukraine (NBU) as further liberalization of currency regulation has relaxed the terms and procedure for the purchase and transfer of foreign currency for some transactions, according to the central bank's website.

In particular, the procedure for the purchase and transfer of foreign currency for transactions of foreign investors with government domestic loan bonds has been relaxed. The transactions with government bonds, which were received by foreign investors via converting depositary receipts issued for government domestic loan bonds by a foreign bank, have been settled.

In addition, if the calculations for the implementation of a foreign investment and its further return are conducted through one bank, the client is allowed to submit a simpler package of documents required for carrying out these transactions.

The National Bank also regulated the cases of currency purchase for transactions related to the performance of obligations in foreign currency by a resident-guarantor (guarantor) instead of a resident debtor to a non-resident under a foreign economic contract and to an authorized bank under a loan agreement in foreign currency.

"Such steps will not lead to instability in the foreign exchange market, but they will facilitate the implementation of capital export/import transactions and improve the legal and regulatory base of the NBU," the central bank said.

Corresponding changes are outlined in NBU Board resolution No. 65 dated July 18, 2017 amending the procedure and conditions for foreign exchange trading, which came into force on July 20.