On March 2014, the Board of National Bank of Ukraine (the "National Bank") adopted Resolution No. 172 "On regulation of financial institutions activity and performance of currency transactions" ("Resolution No. 172") by which it introduced new particularities of foreign currency transactions performance. New regulations will apply first of all to the purchase of foreign currency and transfer of currency abroad with the purpose of fulfilment of obligations under appropriate agreements. The above legislative act cancels Resolution of the National Bank "On measures regarding banks' activity and performance of currency transactions" No. 49 dated 6 February 2014 ("Resolution No. 49").
Having adopted Resolution No.172, the National Bank has softened some restrictions established by Resolution No. 49. Under Resolution No. 172 the National Bank has:
- reduced the term of completion of foreign currency purchase transactions performed by banks under instructions of their customers. Starting from 28 March 2014 banks will be allowed to use customers' funds in local currency for the purchase of foreign currency on the third business day after the day when funds were disposed onto a special analytical account, from 1 April 2014 - on the second working day;
- lifted the prohibition on purchase by residents of foreign currency for the purpose of making investments abroad, as well as on purchase of foreign currency by insurers for recovering of insurance reserves;
- lifted the restriction to perform currency exchange transaction on terms of "tod", "tom" and "spot" only (at the same time, all transaction without the actual supply of currency are still prohibited);
- increased the cap amount of foreign currency which may be transferred abroad under current non-trade transactions under individuals' instructions: toan equivalent UAH 150,000 hryvnias per month in case the individual provides relevant supporting documents and imposed a cap of UAH 15,000 per month, in case such documents are not available;
- permitted to sell foreign currency cash to individuals within an amount of an equivalent of UAH 15,000 to one individual per one working day within one banking institution;
- allowed to purchase foreign currency cash from individuals within an amount of the equivalent of UAH 150,000 without the requirement to provide an identity document (it should be mentioned that individuals are still required to provide an identity document in case of purchase of foreign currency).
Meanwhile, the National Bank has prolonged some restrictions introduced previously under Resolution No. 49 and has established some new ones. In particular, the National Bank has:
- restricted residents' right to make premature repayment of loans (financial aid) in foreign currency, this restriction also applies to any additional agreements to loan (financial aid) agreements that parties may enter into;
- extended the provision on imposition of the cap amount of foreign currency that individual may purchase. Such cap is the equivalent of UAH 15,000 per one working day within one banking institution;
- extended the provision that allows banks to prematurely repay deposits in foreign currency only in local currency under the rate of purchase of foreign currency as of the relevant date;
- ordered banks to suspend issuance of new saving (deposit) certificates for the term of duration of Resolution No. 172.
It should be noted that Resolution No.172 is applicable to banks as well as other financial institutions, unlike the previous Resolution No. 49.
Resolution No. 172 came into force on 28 March 2014 and will be effective until 1 May 2014.