Over the last months Ukraine has experienced significant pressure on its national currency due to the country's dire macroeconomic situation. The Ukrainian government was forced to take a number of decisions to stabilise the Ukrainian economy, in particular the foreign exchange market.
On 20 August 2014, the National Bank of Ukraine (the "NBU") passed Regulation No. 515 "On Resolving the Situation at the Foreign Currency Market of Ukraine" (the "Regulation"), which became effective on 21 August 2014.
Under the Regulation:
- the requirement for the mandatory sale applies to 100 % of the total sum of foreign currency proceeds received from outside of Ukraine (as compared to the 50% requirement established before). As was previously the case, such sale is mandatory and is automatically undertaken by a servicing bank without any approvals or instructions from a client; and
- a maximum term for payment under export and import transactions by the Ukrainian companies (previously set at 90 days) will continue to apply.
According to the NBU, the Regulation aims to stabilise the foreign exchange market in Ukraine and prevent abuse of the Ukrainian financial system for the purposes of money laundering and terrorism financing.
The Regulation shall be in effect until 21 November 2014.
Legislation: NBU Regulation "On Resolving of the Situation at the Foreign Currency Market of Ukraine" No. 515 dated 20 August 2014.