NBU increases annual e-limit on some foreign transactions by individuals to EUR 200,000

The relevant report has been posted on the NBU website on February 4.

“The NBU estimates that this easing measure will not disrupt the operation of Ukraine’s FX market, one of the reasons being that individuals have been able to freely buy noncash foreign currency for more than a year now, without having to make any commitments or justify these transactions. In 2020, individuals transferred about EUR 274 million abroad within the e-limit. This amount is lower than the average daily trading volume in the interbank FX market," said NBU Deputy Governor Yuriy Heletiy.

According to the NBU, favorable foreign exchange market conditions create needed “prerequisites for the gradual liberalization of currency regulation, and the increase in the e-limit comes as another step in the currency liberalization”.

“As one of its priorities under the Currency Liberalization Roadmap, the NBU aims to completely remove the e-limit on international investments by individuals. This will be possible after a raft of draft laws on combating BEPS (under the Action Plan on Base Erosion and Profit Shifting) are passed and implemented,” reads the report.

The regulator added that the NBU continues to promote the use of digital analogues of paper documents. In particular, the NBU has allowed banks and nonbank financial institutions to use digital passports in the mobile application Diia for foreign exchange transactions with individuals, if the required technological capabilities are available. 

As reported, on February 7, 2019, in pursuance of the Law of Ukraine “On Currency and Currency Operations,” the NBU introduced a EUR 50,000 e-limit on certain foreign exchange transactions by individuals to transfer funds from Ukraine or into accounts of nonresident legal entities that were granted the right to open accounts with the Ukrainian banks. 

On December 18, 2019, the NBU raised the annual e-limit on certain foreign exchange transactions by individuals to EUR 100,000 from EUR 50,000.

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