NBU’s Resolution No.534

The National Bank of Ukraine has improved a few compliance procedures and enhanced supervision over fulfilment of the requirements for mandatory sale of foreign currency proceeds. The regulator has undertaken these measures in order to balance the situation in the currency market of Ukraine.

To resolve the said above issues, the NBU issued Resolution dd. August 28, 2014, No.534 on entering alterations to the resolution passed by the NBU’s Board on August 20, 2014, No. 515.

In particular:

it specifies that mandatory sale is to be performed the next day after the money is credited to the clearing account;

it sets out that the listed banks cannot discontinue supervision over export transactions made by their clients under the documents confirming offsetting  – foreign currency proceeds from the export are to be sold in full in accordance with the established procedure;

it sets out that the listed banks cannot issue loans in foreign currency to the clients (legal persons, individual entrepreneurs and permanent representatives of legal persons – non-residents)  with the purpose of trading the foreign currency in the domestic foreign exchange market. These loans can be given solely to settle foreign trade liabilities;

it sets out that at the end of the business day banks are to submit the detailed report, by filing out the established form, on total amount of mandatory sale of foreign currency proceeds they are going to sell the next business day.

In so doing, the enacted regulations do not introduce new requirements for making currency transactions; meantime, they enhance and boost oversight and monitoring to be carried by the National Bank of Ukraine.