NBU Has Mitigated Conditions for Business for Selling Foreign Currency
The National Bank of Ukraine has simplified the conditions for the sale of foreign currency by the clients of the banks in the interbank foreign exchange market. The amendments to the legislation are enshrined in the NBU Resolution No.7 of January 25, 2018 “On Amending certain normative legal acts of the National Bank of Ukraine” and entered into force on January 27, 2018.
The innovations provide mainly the following:
- Clear definition of the client’s right to apply for the sale of foreign currency to any authorized bank by his choice (regardless of the availability of a current account in foreign currency in this bank).
- Clarification of the terms of sale of foreign currency of the clients by the bank. We remind that an authorized bank is required by proxy of the client to sell its own funds in foreign currency no later than 5 banking days, starting from the day of writing off these funds from the client’s current account. The NBU clarified that in case of transfer of funds for sale by the client from another authorized bank, the sale of this currency is carried out within 5 days from the date of transfer of these funds to the correspondent account of the authorized bank.
The outlined measures for monetary liberalization are developed taking into account the proposals received from the business and market participants. The result of such steps will be the expansion of business opportunities for choosing the optimal currency selling rate. In addition, the above innovations will contribute to the formation of appropriate conditions for the development of economic competition in the interbank foreign exchange market of Ukraine. At the same time, the changes will not have negative impact on the currency market.