On 18 March 2014 the National Bank of Ukraine (the “NBU”) issued Regulation No.137 (the “Amendments”) amending the existing NBU Regulation No. 49 dated 06 February 2014 (“Regulation No. 49”) with respect to a “six day rule” for the purchase of foreign currency. You may find our analysis of Regulation No. 49 in our law-now articles issued on 11 February and 3 March.

As noted by the NBU, the Amendments became possible due to the gradual reduction of excessive volatility at the interbank foreign currency exchange market of Ukraine. The Amendments, as well as those issued earlier by the NBU in relation to operation of Regulation No. 49, aim to make the procedure for foreign currency purchase shorter and less complicated; though, in essence, do not significantly ease the day-to-day operations and settlements for Ukrainian businesses.

Under the rules imposed by Regulation No.49 legal entities and private entrepreneurs in order to buy foreign currency are required to credit the relevant amount in UAH to an authorised bank's nominated internal (analytic) account; the bank could then buy foreign currency in only 6 business days after such crediting. The Amendments reduced the above term for foreign currency purchase by the authorised banks to five business days after the day when the relevant amount in UAH has been credited. The Amendments also provide that as of 25 March 2014 the aforementioned term will be reduced to four business days.

The Amendments became effective on 19 March 2014 and will remain in effect until amended or cancelled by the special Resolution of the NBU.