What does the NBU think about the new easing of currency restrictions and the return of currency extortion?

NBU Chairman Andriy Pyshnyi said: “Our decisions are fully in line with our declared strategy of easing currency restrictions, transitioning to greater exchange rate flexibility and returning to inflation targeting.”

At the same time, the NBU will not yet allow repayment of existing business debt in foreign currency.

“The country’s foreign exchange resources are limited. Therefore, we cannot yet enable businesses to service and repay such loans without restrictions. This would generate a multibillion-dollar demand for currency, undermining exchange rate and macro-financial stability,” Pyshnyi said.

Also, according to him, over the past month the NBU has received several requests for a significant increase in the terms of return from exports in various industries, but so far, it does not see sufficient grounds for this.

“The NBU cannot ease capital restrictions and simultaneously extend the terms of return for export proceeds. Because the first will create additional demand for foreign currency, the latter will affect supply,” he said.