NBU lifting cap off cash forex rate for banks

NBU lifting cap off cash forex rate for banks

Ukrinform
As of May 21, the National Bank will lift restrictions on setting the exchange rate at which banks can sell cash foreign currency to clients.

This was reported by the press service of the National Bank with reference to the relevant resolution (No.102), Ukrinform reports.

"From May 21, 2022, the National Bank of Ukraine will lift restrictions on setting the exchange rate at which authorized institutions are allowed to sell cash foreign currency to clients. Previously, the relevant rate was not to deviate from the official one by more than 10%," said in a statement.

The resolution also removes similar restrictions on setting the exchange rate at which banks write off hryvnia funds from clients’ accounts when their hryvnia cards are used abroad.

Read also: War to shrink Ukraine’s economy at least by a third - National Bank

According to the NBU, the decisions will improve operating conditions for legal market players, which will increase competition and the liquidity of the legal segment, while reducing the volume of illegal transactions.

All this will make the foreign exchange market more stable and help reduce the amplitude of exchange rate fluctuations in its cash segment, the regulator hopes.

As reported, until the end of the war, the official exchange rate shall remain fixed at UAH 29.25 per dollar.

It was also reported that the National Bank allowed banks to resume on April 14 the sale of cash foreign currency to the public.

Experts believe that dollar fluctuations in the cash market reflect the net demand and supply of cash currency.


Let’s get started read our news at facebook messenger > > > Click here for subscribe

While citing and using any materials on the Internet, links to the website ukrinform.net not lower than the first paragraph are mandatory. In addition, citing the translated materials of foreign media outlets is possible only if there is a link to the website ukrinform.net and to the website of a foreign media outlet. Citing and using materials in offline media, mobile apps, Smart TV are allowed only with written permission from Ukrinform. News and publications marked as "Advertisement" and "PR" and articles in the section "Releases" include promoted content, and an advertiser is responsible for the content.

© 2015-2022 Ukrinform. All rights reserved.

Website design Studio Laconica

Extended searchHide extended search
By period:
-