Ukrainian Central Bank Announces Major Currency Liberalisation After Invasion
Central Bank Implements Sweeping Currency Reforms to Bolster Economy
Overview of the New Measures
Aug 11 (Reuters) - Ukraine's central bank announced on Monday the biggest currency liberalisation measures since the February 2022 launch of the full-scale Russian invasion of the country in an effort to boost business and investor confidence.
The regulations, issued late in the evening, provide significant increases in allowances in purchases of foreign currency and withdrawals from Ukrainian bank accounts.
Key Changes to Currency Regulations
Increased Allowances for Currency Purchases and Investments
The monthly amount permitted for purchasing non-cash currency and investments, bank metals and foreign securities was increased fourfold from 50,000 to 200,000 Ukrainian hryvnias ($4,450).
Higher Withdrawal Limits
The daily limit for cash withdrawals from accounts in Ukraine and abroad was doubled to 200,000 hryvnias.
And the monthly limit for transactions from cards denominated in hryvnias was raised to 200,000 hryvnias.
Central Bank's Statement and Economic Outlook
Support for Ukrainians at Home and Abroad
"The package for easing currency restrictions includes a strong component that makes life easier for Ukrainians abroad and expands opportunities for citizens living in Ukraine," the central bank said in a statement.
Assurances on Market Stability
The bank said the measures "will not create risks for the stability of the currency market, given the established conditions and careful analysis of each individual measure".
The measures, it said, had "already been taken into account in the NBU's updated macroeconomic forecast, which predicts that international reserves will grow to nearly 70 billion USD by 2026".
Reporting Credits
(Reporting by Ron Popeski; Editing by Stephen Coates)
