May 2013

National Bank Extends Currency Exchange Rate
Stabilization Measures and Establishes Cash Payment Limits

The National Bank of Ukraine (the "NBU") renewed the time-limits for cross-border payments and requirements for mandatory sale of foreign currency proceeds. On 14 May 2013 the NBU adopted Regulation No. 163 "On Change of Terms of Payments under Export and Import Transactions and Introduction of the Mandatory Sale of Foreign Currency Proceeds" and Regulation No. 164 "On Establishment of the Amount of Mandatory Sale of Foreign Currency Proceeds" (the "Regulations"). These Resolutions are to remain in effect from 20 May 2013 to 19 November 2013.

The Regulations renewed the following rules established by the NBU in November 2012:

  • 50 percent of the proceeds in the currencies of the 1st group of the Classifier of Foreign Currencies (US Dollars, Euro, British Pound, Swedish Krona, Swiss Franc, Japanese Yen etc.) and in Russian Rubles must be sold on the interbank currency market without the need for client's instructions;
  • payments for goods and services exported by Ukrainian residents must be made by their foreign counterparties within 90 calendar days from the date of customs clearance of goods or execution of the certificate for acceptance of services; and
  • goods and services for which Ukrainian residents made an advance payment must be supplied by the foreign counterparty within 90 calendar days from the date of the advance payment.

Regulation No. 163 also mandates the sale on Ukrainian interbank currency exchange market of foreign currency proceeds received from outside of Ukraine by individuals (residents and non-residents) in excess of the equivalent of UAH 150,000 (approx. USD 18,760) per month. This requirement is effective from 28 May 2013.

The shorter terms of cross-border payments and the mandatory sale of foreign currency proceeds now apply also to the banks' own operations (previously these rules applied only to the clients' transactions).

In addition, on 6 June 2013 the NBU adopted the regulation limiting payments in cash which will be effective from 1 September 2013. According to the above regulation, cash payments made within one day between legal entities and individual entrepreneurs shall not exceed UAH 10,000 (approx. USD 1,250), and cash payments between two individuals shall not exceed UAH 150,000 (approx. USD 18,760).

For further information please contact
senior partner Armen Khachaturyan and associate Iryna Scherbyna

© Asters 2013
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