NBU changes rules for granting individual F/X transfer permits; Bank governor comments on future F/X liberalization steps
Complying with amendments to legislation on the central bank passed by parliament in March, the NBU has revised its internal rules governing the procedure of granting individual permits for F/X transfers abroad. Effective Apr. 20, 2024, the NBU will now decide on issuing such permits based on its own analysis, whereas previously, a formal request by the Cabinet of Ministers was the primary reason for the NBU to grant an individual permission. Specifically, when granting individual permits, the National Bank will consider whether such decisions are consistent with the goals of ensuring macroeconomic, financial, and external stability, as well as its conditions-based F/X Liberalization Strategy.
On a related note, NBU Governor Andriy Pyshnyi reiterated the central bank’s intention to continue the liberalization of F/X controls by allowing repatriation of newly paid dividends, with the "repatriation of interest payments on 'old' debt commitments set to follow in due course.” Pyshnyi also mentioned that additional financing for Ukraine from the potential use of immobilized Russian assets would enable the bank to expedite the liberalization process.