On January 4, 2019 the National Bank of Ukraine announced a list of draft regulatory legal acts aimed at liberalization of currency regulation in Ukraine, which will come into force on February 7, 2019.
Among the innovations there are many that deserve special attention, in particular:
- term of making payments under foreign trade contracts is increased up to 365 days;
- individual licenses for currency operations to be replaced by a system of electronic limits (EUR 2,000,000.00 per year for legal entities, EUR 50,000.00 per year for individuals) are revoked;
- possibility of termination of foreign economic activity for subjects who have violated the deadlines for settlement of foreign economic activity contracts abolished;
- foreign exchange supervision of foreign trade transactions worth up to UAH 150,000.00 is cancelled;
- online purchase of foreign currency by individuals is allowed (within the limit of purchase of cash currency - up to UAH 150 000.00 per day in equivalent);
- double control over export operations abolished - currency control will be exercised only by the bank that received information about the relevant customs declaration, etc.
Such a step on the part of the NBU is a bold decision and testifies to the positive changes in the Ukrainian economy that have occurred in recent periods. This is the first time that the regulator has introduced liberalization of currency regulation of this scale. Norms of the documents adopted by the NBU are primarily aim at deregulation of investments, simplification of cross-border operations with currency valuables and expansion of the list of available currency transactions.
The National Bank of Ukraine has announced further plans for deregulation of currency legislation in the future, the ultimate goal of which is to establish a free capital flow regime in Ukraine.
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