22 Jun Improving currency regulation
The new start of improving the currency regulation
– Parliament adopted the law “On Currency and Exchange Transactions”.
The law was adopted in the second reading. It replaces the old decree of the Cabinet of Ministers on the system of currency regulation and currency control, which was issued in 1993.
The new law is intended to promote monetary liberalization. In particular, currency control for operations under the amount below 150 000 UAH is canceled. Credits registration for non-residents is canceled and possibilities of currency restrictions are considerably reduced. Moreover, the bill allows the NBU to effectively take measures during the harsh economic periods.
We are pleased that EasyBusiness, together with partners from CES, CASE Ukraine and then deputy head of NBU Vladislav Rashkovan made a significant contribution to the formation of the strategy for the liberalization of currency regulation. This strategy became the basis for the adopted law.
Harmonization of Ukrainian legislation with Directive 88/361/EEC and the removal of a number of restrictions on direct investment, operations with currency, loans and transfers of financial assets became necessary in order to overcome the inefficiency and overburdening of the financial control system.
After analyzing international experience, we can assert that the gradual liberalization of currency regulation will increase the inflow of foreign capital, simplify the cross-border activity of enterprises, improve the operational effectivity and bring Ukraine closer to the European regulatory principles.