National Bank of Ukraine Photo: Getty images
The National Bank of Ukraine has announced the easing of a number of currency restrictions that will come into effect on 21 December. According to the regulator, these changes are aimed at supporting domestic producers and improving the business environment, and will not have a significant impact on the hryvnia exchange rate or international reserves.
Here are some of the innovations:
- Operations with precious metals: Legal entities and individual entrepreneurs engaged in the production of jewellery and confirming their activities in this area before the full-scale invasion will be able to buy and sell precious metals without physical delivery for non-cash hryvnia. This will help to stabilise the jewellery industry, reduce imports of finished goods, and lower production costs.
- Purchase of foreign currency for nuclear facility operators: Nuclear operators can now buy foreign currency without taking into account account account balances if the funds are received under loan agreements supported by foreign guarantees. This should ensure a stable supply of nuclear fuel and support the country’s energy security.
- Unification of approaches to the payment of Eurobond coupons: The NBU has updated the rules that allow Ukrainian companies to reimburse non-residents for the costs of paying coupons on Eurobonds. This will create a level playing field for all companies that have raised funding through Eurobonds and will not affect the foreign exchange market.
According to the NBU, these changes will create more favourable conditions for doing business in Ukraine, but will not harm the stability of the foreign exchange market.
