National Bank of Ukraine introduced mandatory sale of 100% foreign currency proceeds

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The National Bank of Ukraine (NBU) toughened requirements for mandatory sale of international currency proceeds, that was temporarily introduced in November 2012. Now the requirement for mandatory sale applies to 100% of foreign currency proceeds, instead of 50% as was set before.

The requirement for mandatory sale applies to foreign currency proceeds from abroad received by legal entities (except authorized banks), sole entrepreneurs, foreign representative offices (except official representative offices); proceeds received to accounts opened in authorized banks for conducting joint activity without incorporation of legal entity; foreign currency proceeds received to accounts of residents opened abroad under obtained NBU individual licenses.

Mandatory sale is applicable to foreign currency of the first group of the NBU classifier (among the others US Dollars, Euro, Pounds and other freely convertible currencies), banking metals, as well as Russian rubles.

Please note that the sale of foreign currency proceeds at interbank currency market is performed by authorized bank mandatorily (ie without client's instructions) not later than the day following the receipt of relevant proceeds.

The NBU has also re-established requirement for execution of payments under export and import of goods within 90 calendar days.

At that, it should be noted that NBU has not prolonged requirement for mandatory sale of abroad proceeds for the benefit of individuals in equivalent to 150,000 hryvnias per month, therefore starting from 20 August 2014 it is no longer effective.

The aforementioned amendments were made further to the Resolution of National Bank of Ukraine dated 20 August 2014 No. 515 "On Foreign Exchange Market Regulation" and shall be effective till 21 November 2014.

We hope that the above information will be helpful for you.

Topics:  Foreign Banks, Foreign Currency, Ukraine

Published In: General Business Updates, Finance & Banking Updates, International Trade Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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