Ukraine's National Bank expects slight rise in forex demand following Aug easing
The National Bank of Ukraine (NBU) expects the August package of foreign exchange liberalization measures to generate only moderate additional demand for foreign currency, which will be insignificant compared with the size of the foreign exchange market, the regulator said in response to a request from Interfax-Ukraine.
The National Bank of Ukraine anticipates only a slight increase in foreign exchange demand following the August measures, according to a statement to Interfax-Ukraine. Most transactions affected by the package do not require purchasing foreign currency; they involve accounts with foreign currencies, such as cash withdrawals and payments for international goods, services, and rentals.
The regulator assessed each measure's impact and concluded that the liberalization would not significantly affect the foreign exchange market or pose risks to its stability.
The change in procedures for banks to calculate their foreign exchange position, effective September 1, is also expected to result in minimal additional demand for foreign currency. This is due to the gradual inclusion of provisions formed against active operations that are currently not part of the calculation, as per the schedule approved by the National Bank.
On August 11, the National Bank launched the new package of foreign exchange liberalization measures for individuals, legal entities, and the financial sector. These measures included raising the monthly limit on non-cash foreign currency purchases for individuals from UAH 50,000 to UAH 200,000, increasing cash withdrawals and payments abroad, and expanding opportunities for businesses.
Written by urgent.news from Interfax-Ukraine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
