Yulia Stusenko named the consequences for the business from the abolition of duties to sell foreign exchange earnings

As of today, the requirement regarding the mandatory sale by entrepreneurs of foreign exchange earnings in the interbank foreign exchange market has been abolished.

Relevant changes to the Regulation on protection measures and determining the procedure for carrying out certain operations in foreign currency, introduced by the resolution of the Board of the National Bank of Ukraine No. 78 dated 06/18/2019, were commented by Skliarenko, Sydorenko and Partners associate partner Yulia Stusenko for "Law and Business".

According to the expert, the abolition of currency restrictions will have positive consequences for the business. “First of all, the business will no longer lose on exchange rate differences that arose in connection with the forced sale of currency at one rate and the need to acquire currency over time to pay abroad at another rate. Secondly, a business will be able to sell currency when it considers it necessary and when the currency exchange rate is economically beneficial for it, and not under compulsion, when the bank, without the client’s instructions, was obliged to credit the cash receipts to the distribution account and no later than the next day carry out their mandatory sale. Third, the business will receive substantial savings on commissions that banks charged for the sale and subsequent acquisition of foreign currency in the interbank foreign exchange market, ” explained Y. Stusenko.

In addition, in her opinion, the abolition of the mandatory sale of foreign exchange earnings will contribute to the stability of the hryvnia exchange rate. “After all, the previous seasonal fluctuations in the hryvnia exchange rate were, among other things, related to the mass mandatory sale of foreign currency when agricultural producers received revenue from the crop and the acquisition of foreign currency when purchasing resources necessary for agricultural work abroad,” the expert is confident.