NBU allows banks to sell foreign currency in cash to the public

Starting from April 14, 2022, the National Bank of Ukraine allowed banks to sell foreign currency in cash to the population, and also clarified the rules for banks to repay loans to non-residents, the NBU press service reports.

The regulator expects that the resumption of sales of cash currency by banks will help reduce opportunities for the functioning of the market for illegal currency exchange operations and, accordingly, reduce risks for citizens.

"At the same time, to prevent pressure on the foreign exchange market, the NBU has provided that an authorized institution can sell cash currency to customers within the difference between the total volumes of foreign currency purchased by it and sold. This difference will be calculated starting from April 13, 2022," the report says.

What other changes have been made

Additionally, the National Bank has defined the specifics of setting cash exchange rates for transactions of authorized institutions with clients, in particular:

the rate of sale of cash currency by authorized institutions may deviate by no more than 10% from the official exchange rate of the NBU on the day of the transaction;the rate of purchase of cash currency by authorized institutions should not be lower than the official exchange rate of the NBU on the day of the transaction.

At the same time, the sale of non—cash currency by banks to individual customers is prohibited in the future, except for the exceptions defined by Resolution No. 18 of February 24, 2022 (as amended).

In addition, in order to prevent uncontrolled withdrawal of capital abroad, the NBU banned banks from repaying loans they received from non-residents ahead of schedule.