Ukraine Central Bank Unveils New Currency Liberalisation Measures

Ukraine's central bank has introduced new currency liberalisation measures to bolster the nation's defence and business sectors. The latest policies permit state-owned companies to buy foreign currency and support e-commerce operations. Additionally, a monthly limit on payments abroad for jewelry and real estate purchases is now in effect.

Ukraine's central bank on Monday unveiled a new phase of currency liberalisation aimed at supporting the country's defence and business sectors.

The central bank, having initiated its most significant wartime currency liberalisation in May, aims to ease restrictions that were imposed following Russia's 2022 full-scale invasion.

The bank's official website detailed new measures, including allowing state-owned companies to purchase foreign currency and transfer it to non-residents to buy carbon emission quotas for aviation. According to the bank, this will ensure the uninterrupted operation of defence purchases and bolster Ukrainian-European military-technical cooperation.

Effective from September 10, the new policies will also permit e-commerce businesses to buy and use foreign currency to pay VAT on Ukraine-produced goods purchased by EU consumers, and allow certain businesses to reimburse coupon payments on eurobonds.

The central bank also introduced a monthly limit for payments abroad for transactions related to jewelry and real estate to prevent capital outflows.

(With inputs from agencies.)