According to the head of the National Bank, Andriy Pyshny, the basic purpose of currency restrictions is that new money should come to Ukraine.
The National Bank of Ukraine (NBU) is ready to further ease currency restrictions. The head of the state regulator, Andrei Pyshny, in an interview with the Youtube channel “The Last Capitalist”, spoke about what the next stage of currency liberalization will be.
They will not change the strategy: the NBU explained how they control the foreign exchange market
According to him, the second stage of easing foreign exchange restrictions envisages that trade financing requirements will be relaxed.
“Providing, among other things, for the possibility of paying interest on the obligations of Ukrainian issuers,” he said.
At the same time, the easing of restrictions does not provide for the return of the principal amount and the body of the corresponding obligations. As Pyshny noted, this will happen at the next stage of currency liberalization.
The head of the National Bank added that the basic purpose of currency restrictions is that new money should come to Ukraine.
Cancellation of currency restrictions: details
In July 2023, the National Bank of Ukraine presented a public version of the Strategy for Easing Currency Restrictions, which included a transition to greater exchange rate flexibility and a return to inflation targeting. As part of the first stage in October, transition to managed course flexibility. At the same time, the regulator compensates for the structural deficit of the currency, so the exchange rate fluctuates – the dollar either becomes more expensive or cheaper.
In addition, from December 1, the National Bank lifted all restrictions for banks and non-bank financial institutions on the volumes of their possible sales cash foreign currency to the population.
What restrictions does the National Bank refuse:
- Stage I – liberalization of trade operations and minimization of the multiplicity of current exchange rates, significant attention is paid to promoting investment and new loans;
- Stage II – reparation of interest on old debt obligations will take place and the liberalization of trade finance will increase; currency risks will be separately regulated;
- Stage III – there will be an opportunity for payments on investments and loans, as well as the introduction of lending to non-residents and work with investments from abroad. At the same time, a large-scale liberalization of population transactions is expected to take place.
Also Focus wrote that from the first day of the war and further in 2022, the National Bank made a number of decisions, stabilizing the outflow of money from banks and allowing banks to further increase liquidity.
Let us remind you that on January 10, the head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy Danil Getmantsev in your column for The focus wrote, what changes will occur on the foreign exchange market in Ukraine in 2024.