Currency restrictions effectively stabilize the Ukrainian economy, but they hold back investment.  

The director of the NBU’s monetary policy department, Volodymyr Lepushynskyi, stated: “Currency restrictions are effective for stabilizing the economy, but they are burdensome for it and hold back recovery. Ukraine’s economy is market-based and open. Businesses need the opportunities provided by the free movement of capital.”

He emphasized that currency restrictions were introduced at the beginning of the full-scale invasion to prevent the loss of international reserves and, as a result, to ensure the country’s economic stability. However, any currency restrictions can only be a temporary solution because, over time, they become either ineffective or counterproductive.

“For example, in order to attract capital to the economy, investors want to be able to withdraw it on legal grounds, but if currency restrictions prohibit this, then there will be no dialogue about attracting investment to the country,” Lepushynskyi explained.

He added that in the initial stages, the process of currency liberalization may generate additional demand for currency for investment payments, but over time, investment will begin to grow.