The National Bank of Ukraine (NBU) announced on May 3 that it was implementing the largest set of currency liberalization measures since the beginning of the full-scale war.
The measures are aimed at decreasing restrictions on businesses and currency controls. Ukraine implemented strict controls over its currency and tightly regulated foreign exchanges in 2022, hoping to stave off a collapse of the hryvnia.
“Firstly, all currency restrictions for the import of works and services are abolished. Secondly, the ability of businesses to repatriate ‘new’ dividends is ensured. Thirdly, the opportunity is provided to transfer funds abroad through leasing/rental,” the NBU said in the press release on Friday evening.
“Fourth, restrictions on the repayment of new external loans are being relaxed. Fifth, the opportunity has been given to repay interest on ‘old’ external loans. Sixth, restrictions on the transfer of foreign currency from representative offices in favor of their parent companies are being relaxed,” the regulator said.
In a statement posted on the NBU website, the bank wrote that most of the measures would come into force on May 4.
The package consisted of the following six measures:
- the removal of all currency restrictions on the import of goods and services
- the possibility for businesses to repatriate new dividends
- the ability to transfer funds abroad for the purpose of renting or leasing
- the easing of restrictions on the repayment of new external loan
- the ability to repay interest on old external loans
- the relaxing of restrictions on the transfer of foreign currency from representative offices to their parent companies
The NBU wrote that the measures would lead to “a gradual increase in export revenue to Ukraine” and help Ukrainian businesses “to enter new markets, including those from which companies from (Russia) are displaced due to sanctions.”