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Publication date: 26.05.2024
Update of the procedure of the National Bank granting permits for currency operations: new norms and prospects
Introduction
On April 20, 2024, changes in the procedures for the National Bank of Ukraine (NBU) to issue separate permits for foreign exchange transactions entered into force. These changes were introduced by Resolution No. 46 dated April 19, 2024 "On Amendments to Resolution No. 18 of the Board of the NBU dated February 24, 2022." The changes are aimed at bringing the normative legal acts of the NBU into compliance with the Law of Ukraine No. 3624-IX and the commitments made within the framework of the Memorandum on Economic and Financial Policy with the IMF. The regulator's press service reported on these changes and their significance for the country's economy.
Background and legal framework
The changes were made in order to harmonize the normative legal acts of the National Bank of Ukraine with the Law of Ukraine No. 3624-IX "On Amendments to Certain Laws of Ukraine Regarding the Regulation of Certain Issues of the Activities of the Deposit Guarantee Fund of Individuals, the National Bank of Ukraine and the National Securities and Stock Market Commission". which entered into force on April 19, 2024. This law envisages new approaches to the regulation of currency operations, in particular with the aim of ensuring macroeconomic stability and improving the state's financial policy.
Major changes in the procedure
Previously, the appeals of the Cabinet of Ministers of Ukraine (Cabinet) were the main basis for the adoption of separate decisions by the National Bank of Ukraine regarding the granting of permits for currency operations. From April 20, 2024, this practice has changed: now the National Bank will also largely focus on its own analysis of the possible consequences of such decisions.You may be interested in the following articles: lawyer's consultation, lawyer's consultation, document analysis, legal situation analysis, written consultation, document review by a lawyer, lawyers' documents, lawyer's help online, lawyer online, legal opinion, lawyer's legal opinion, lawyer online.
Key aspects of the new approach
Macroeconomic stability: the NBU will carefully analyze whether the granting of permits meets the goals of ensuring macroeconomic stability. This includes assessing the impact on inflation, the exchange rate and overall financial stability.
Financial stability: The regulator will take into account possible consequences for the country's financial system, including risks to the banking sector and the capital market.
External stability: The impact on the country's international financial relations and reserves will be assessed, particularly in the context of cooperation with international financial institutions.
Strategy for easing currency restrictions: the NBU will consider whether the granting of separate permits is consistent with the Strategy for easing currency restrictions, the transition to greater exchange rate flexibility, and a return to inflation targeting.
Conclusion
Updating the procedures of the National Bank granting permits for currency transactions is an important step towards increasing the transparency and efficiency of currency regulation in Ukraine. The new norms are aimed at ensuring macroeconomic, financial and external stability, as well as compliance with international obligations. These changes have the potential to significantly improve the country's currency policy and contribute to its economic development.Thus, the updated procedures for granting NBU permits are an important step in the development of the financial system of Ukraine, ensuring its stability and compliance with modern challenges and requirements of international financial institutions.
