Ukraine has eased currency restrictions to strengthen the national currency.

As of August 29, banks are now allowed to sell non-cash foreign currency without confirming the grounds or obligations for such a transaction, the NBU reported.

The National Bank specified that this action is necessary as part of the transition to greater exchange rate flexibility and a return to inflation targeting. This is the first stage of softening currency restrictions to minimize the multiplicity of exchange rates. The NBU has clarified that such operations will be carried out at the bank rate, within the monthly limit of UAH 50,000 equivalent per bank.

Also, the NBU will increase, from UAH 100,000 to UAH 200,000 equivalent, the monthly limitation for consumer purchases of non-cash foreign currency with subsequent placement on deposit for three months. These changes will contribute to reorientating a portion of the population’s demand from cash foreign currency to non-cash.