On 13 April 2011, the National Bank of Ukraine (the “NBU”) approved Resolution No. 111 ‘On Amendments to Certain Legislative Acts of the National Bank of Ukraine’ (“Resolution No. 111”), which brought changes to the Regulation ‘On the Procedure for and Terms of Foreign Currency Trading’ approved by Resolution No. 281 dated 10 August 2005.

The new provisions on currency swap operations became effective as of 30 May 2011. From now on, Ukrainian banks are allowed to carry out the following currency swap operations: (i) the sale-purchase of currency with other Ukrainian banks; (ii) the exchange of currency with other Ukrainian banks; and (iii) the exchange of currency on international currency markets. However, such currency operations must be performed within a term not exceeding 365 calendar days, and can only involve so-called 1st group currencies*.

The possibility of carrying out currency swap operations with the NBU (which was the only available option under previous regime) remains and therefore, the recent change brought by Resolution No.111 leads to a further liberalisation of the foreign currency market.

Law: Resolution No. 111 ‘On Amendments to Certain Legislative Acts of the National Bank of Ukraine’ dated 13 April 2011, amending the Regulation ‘On the Procedure for and Terms of Foreign Currency Trading’, approved by the Resolution No. 281 dated 10 August 2005, as amended.

*According to the NBU classifier, the following currencies belong to the 1st group: AUD, GBP, DKK, USD, ISK, CAD, NOK, SEK, CHF, JPY, EUR, XDR.