IT Ukraine Association met with the NBU leadership: we agreed to find a compromise solution to the currency issue

Representatives of the IT industry agreed to find a compromise solution with the National Bank of Ukraine on currency procedures. This happened following a meeting on May 27 of the Council of representatives of the IT Ukraine association with Deputy Heads of the National Bank Yuriy Heletiy and Serhiy Nikolaichuk, the association told DOU.

In particular, they said that the purpose of this meeting was to discuss possible consequences for the Ukrainian economy and the export IT industry after the introduction of NBU Resolution No. 102 and the relevant proposals of the association set out in the official appeal.

Position Of The Association

"We strive for an open dialogue and compromise solution in order to preserve the volume of foreign exchange earnings from the export of computer services to the national economy, maintain the current positive dynamics of the development of the IT industry in war conditions, and preserve our specialists," said Konstantin Vasyuk, executive director of it Ukraine.

At the same time, representatives of the IT business noted that without compensatory mechanisms, the National Bank's decision in the long term may negatively affect IT specialists, who are the main resource for the future digital transformation of the economy.

Consequently, there is a question of preserving вже 800 million from the export of Computer Services in the next quarter, preventing the change of tax residency by relocated IT specialists and the potential outflow of talent and highly qualified specialists.

What the NBU says

In turn, the National Bank expressed gratitude to representatives of the IT industry for their fruitful work in the difficult conditions of martial law. The regulator stressed that maintaining active activity by representatives of the IT sector is an important element of the sustainability of the Ukrainian economy.

"Our exchange rate policy will remain transparent. It consists in the fact that currency resources that are scarce during the war are directed primarily to critical needs, as well as to maintaining a balance of interests for all segments of society. And today, more than ever, in order to maintain financial stability in the country, we need understanding of the situation and support from society and business," said Deputy Head of the NBU Yuriy Heletiy.

What we agreed on

Thus, following the first meeting, the participants agreed on the following joint steps::

The association will send additional expert proposals to minimize the consequences of the introduction of a multiple exchange rate, which will save foreign exchange earnings and taxes from the IT industry, switch to a floating exchange rate;over the next week (May 30-June 5, 2022), jointly work out a compromise solution;hold a second meeting to finalize agreements.

Earlier, the Association" It Ukraine " reacted to the fact that the National Bank of Ukraine from May 21, 2022 lifted restrictions on setting the rate at which authorized institutions can sell foreign currency in cash to customers (previously, the corresponding rate should not deviate from the official one by more than 10%).

According to the association, such a decision of the NBU may contribute to the outflow of currency from the country, and IT entrepreneurs will change their tax residence and move to foreign IT companies.

Subsequently, the National Bank said that it was not going to review the controversial policy regarding the exchange rate, despite the sharp dissatisfaction of the IT industry.