Mandatory sale of foreign currency proceeds has been abolished
Tax & Legal Alert
20 June 2019
Mandatory sale of foreign currency proceeds is cancelled starting from 20.06.2019.
The National Bank of Ukraine (“NBU”) abolished the requirement for mandatory sale of foreign currency proceeds in the amount of 30% on the interbank foreign exchange market. This change will become effective from June 20, 2019.
The abovementioned amendments were approved by the Resolution of the Board of the NBU No. 78 dated June 18, 2019 “On Amending the Regulations on Protection Measures and Determining the Procedure for the Execution of Certain Foreign Currency Transactions”.
In connection with the abolition of the mandatory sale of part of foreign currency proceeds, the banks now have the right to complete the currency supervision of compliance by residents with the deadlines for the settlement of export transactions on the basis of documents on termination of obligations by set-off.
Thus, the NBU continues to gradually abolish existing currency restrictions. The ultimate goal of these measures is to ensure the free movement of capital.
We will be happy to provide you with advisory support on all issues you may have in relation to the aforementioned legislative changes.