The mandatory conversion of foreign currency has been cancelled

The National Bank of Ukraine (the "NBU") has cancelled the long-standing requirement to convert 30% of foreign currency proceeds received by Ukrainian companies from abroad into hryvnias.

The foreign currency proceeds received by Ukrainian companies, starting from 19 June 2019, will no longer be subject to the mandatory conversion. Ukrainian companies can, at their own discretion, convert any amount of such proceeds to hryvnias or retain them in foreign currency.

This change is another step in the currency control relaxation plan, which has been developed and followed by the NBU. The next steps will be introduced gradually and cautiously, in order to preserve the financial stability of the country. Some of the restrictions will likely be lifted only once Ukraine adopts the contemplated BEPS measures.

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