KIEV, Feb. 23 – The National Bank of Ukraine announced it has mitigated currency restrictions on some foreign trade transactions that would not destabilize the situation on the interbank currency market.

NBU has exempted foreign currency receipts from nonresidents from surrender requirements if these funds are received as a security deposit (collateral, deposit or guarantee) that serves as a guarantee of the nonresident’s participation in an auction (tender) conducted by residents.

The regulator allowed banks that purchase foreign currency for their customers not to include foreign currency amounts received as a security deposit from a nonresident in the residents' foreign currency account balances.

"These steps would help boost sales of Ukrainian products to nonresidents by making the procurement procedure easier for both state-owned enterprises and all economic agents," the NBU said.

In addition, the NBU allowed banks to purchase foreign currency for their customers if the total foreign currency amount held in the client's account does not exceed the equivalent of $100,000. Until recently, foreign currency purchases were allowed if the client’s total foreign currency holdings were less than $25,000.

The respective amendments to this effect were approved by NBU Board Resolution No. 13 of February 22 amending NBU Board Resolution No. 410 of December 13, 2016. The resolution came into effect on February 23. (om/ez)