All NewsEducationTV
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
Story archiveAll categories
← All Stories

Ukraine Central Bank Eases Currency Restrictions

Created at 10 Aug · 10:31 PM1 source↑ Market-relevant
IN SHORT

Ukraine's central bank announced significant currency liberalisation measures, the most substantial since the 2022 invasion. The changes aim to boost business and investor confidence by increasing allowances for foreign currency purchases and withdrawals from bank accounts.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

200,000 UAHmonthly limit for non-cash currency purchases and investments
200,000 UAHdaily limit for cash withdrawals
200,000 UAHmonthly limit for hryvnia card transactions
50,000 UAHprevious monthly limit for non-cash currency purchases
4,450 USDequivalent of 200,000 hryvnias
70 billion USDprojected international reserves by 2026

Who's Involved

National Bank of Ukraine (NBU)
issued new currency liberalisation measures
Ron Popeski
Reuters reporter
Stephen Coates
Reuters editor

↳ Why This Matters

These measures represent a significant step towards normalizing financial conditions in Ukraine amidst the ongoing conflict, aiming to stimulate economic activity and attract investment by easing capital controls.

Key facts

  • Ukraine's central bank has implemented its most significant currency liberalisation since the 2022 invasion.
  • The measures aim to boost business and investor confidence.
  • Monthly allowances for purchasing foreign currency and investments increased from 50,000 to 200,000 hryvnias.
  • Daily cash withdrawal limits were doubled to 200,000 hryvnias.
  • Monthly limits for hryvnia card transactions were raised to 200,000 hryvnias.

Ukraine's central bank announced on Monday its most significant currency liberalisation measures since the full-scale Russian invasion began in February 2022. The move is intended to bolster business and investor confidence.

The newly issued regulations substantially increase the allowances for purchasing foreign currency and withdrawing funds from Ukrainian bank accounts. The monthly limit for acquiring non-cash currency, investments, bank metals, and foreign securities has been quadrupled from 50,000 to 200,000 Ukrainian hryvnias (approximately $4,450).

Furthermore, the daily limit for cash withdrawals from accounts both within Ukraine and abroad has been doubled to 200,000 hryvnias. The monthly transaction limit for cards denominated in hryvnias has also been raised to 200,000 hryvnias.

The central bank stated that the package of eased currency restrictions is designed to simplify life for Ukrainians living abroad and expand opportunities for citizens residing in Ukraine. The bank assured that these measures would not pose risks to the stability of the currency market, citing careful analysis and established conditions. The NBU has incorporated these changes into its updated macroeconomic forecast, which anticipates international reserves growing to nearly $70 billion by 2026.

Frequently asked questions

The monthly limit for non-cash currency purchases and investments is now 200,000 hryvnias. The daily cash withdrawal limit is also 200,000 hryvnias, and the monthly limit for hryvnia card transactions is 200,000 hryvnias.

The central bank aims to boost business and investor confidence and make life easier for Ukrainians abroad and within the country.

No, the National Bank of Ukraine stated that the measures have been carefully analyzed and will not create risks for the stability of the currency market.

The NBU's updated macroeconomic forecast predicts international reserves will grow to nearly $70 billion USD by 2026.

What Happens Next

01Monitor international reserve growth towards the projected $70 billion by 2026.
02Observe the impact of liberalised currency controls on business and investor confidence.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence
CME Headlines
  • Japanese Yen futures fell as unexpected trade deficit weighed.
    10 Aug · 10:10 PM
  • Japanese Yen futures fell as unexpected trade deficit weighed.
    10 Aug · 10:10 PM
  • 10-Year T-Note futures fell as crude prices rose and inflation data loomed.
    10 Aug · 9:29 PM

How It Developed

Ukraine's central bank announced new currency liberalisation measures.
The regulations increase allowances for foreign currency purchases and withdrawals.
The monthly limit for purchasing foreign currency and investments was raised to 200,000 hryvnias.
The daily limit for cash withdrawals was doubled to 200,000 hryvnias.
The monthly limit for hryvnia card transactions was raised to 200,000 hryvnias.
The central bank stated the measures would not create risks for currency market stability.
The NBU updated its macroeconomic forecast, predicting international reserves to grow to nearly $70 billion by 2026.

Sources

T1
Ukrainian central bank issues biggest currency liberalisation since 2022 invasionReuters

Related Stories

China vows to boost yuan's global use, keep exchange rate stable
10 Aug · 10:44 AM
Euro zone investor morale turns positive in August, Sentix survey shows
10 Aug · 8:36 AM
Japan posts first current account deficit in nearly 1-1/2 years
10 Aug · 1:36 AM
BOJ debated accelerating rate hikes in July, summary shows
10 Aug · 12:51 AM
Dollar gains as markets eye US CPI, yen weakens
10 Aug · 1:34 AM