Ukrainian banks allowed to sell more foreign currency

The National Bank of Ukraine (NBU) has expanded banks’ rights to sell cash foreign currency to the public starting Friday.

From now on, when calculating the amount of cash foreign currency that a bank can sell on the foreign exchange market, 120 percent of the volume of non-cash foreign currency purchases from the public will be taken into account, rather than 100 percent, as it was since April 2022.

"The relevant changes are aimed at maintaining a favourable situation in the foreign exchange market," the NBU statement reads.

In addition, Ukraine’s central bank has eased a number of administrative restrictions, also starting Friday, in order to "create conditions for the launch of the e-residency project and to strengthen positive trends in the cash segment of the foreign exchange market."

This includes allowing e-residents, after paying taxes in Ukraine, to transfer to their accounts abroad funds in foreign currency received on accounts in Ukrainian banks from non-residents for services or works rendered.

The relevant changes will not put pressure on the foreign exchange market and Ukraine's international reserves, the NBU says, as such transactions will not involve the purchase of foreign currency.

"The transfer will be made at the expense of foreign currency received by the e-resident from abroad," its statement reads.

"The implementation of the e-residency project will help attract additional revenues to the state budget, promote Ukraine as a global IT brand and improve Ukraine's position in international rankings."

In April, amendments to the Ukrainian tax code came into force, allowing foreign citizens who have acquired e-resident status and registered as individual entrepreneurs to conduct business and pay taxes in Ukraine without leaving their country of residence or stay.

As part of this project, the NBU has allowed e-residents to open accounts in Ukrainian banks since 8 March.