Ukraine's Central Bank Announces Major Easing of Wartime Currency Controls

Ukraine's central bank has announced its most extensive easing of currency restrictions since the full-scale Russian invasion began in February 2022. The move, detailed in regulations issued Monday, is aimed at boosting confidence among businesses and investors by increasing access to foreign currency.

Key Changes to Currency Rules

The new regulations introduce significant increases to several key limits for individuals and businesses. According to the National Bank of Ukraine (NBU), the changes include:

• Foreign Investments: The monthly limit for purchasing non-cash foreign currency, bank metals, and foreign securities has been quadrupled from 50,000 to 200,000 Ukrainian hryvnias (approximately $4,450).
• Cash Withdrawals: The daily limit for cash withdrawals from bank accounts, both within Ukraine and abroad, has been doubled to 200,000 hryvnias.
• Card Transactions: The monthly limit for transactions made from hryvnia-denominated cards has also been raised to 200,000 hryvnias.

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Central Bank's Rationale

The central bank stated that the measures are intended to "make life easier for Ukrainians abroad and expands opportunities for citizens living in Ukraine." This step towards liberalization reflects the NBU's growing confidence in the stability of the country's financial system despite the ongoing conflict.

In its announcement, the NBU asserted that the changes "will not create risks for the stability of the currency market, given the established conditions and careful analysis of each individual measure." The bank confirmed that the potential impact of these measures has already been incorporated into its updated macroeconomic forecast, which projects that Ukraine's international reserves will grow to nearly $70 billion by 2026.