ATMs and post offices across Ukraine can begin dispensing U.S. dollars and euros from Feb. 7, as the liberalization of the country’s foreign currency controls comes into effect, according to the National Bank of Ukraine, or NBU.
At some ATMs and banking terminals, customers will also be able to deposit Ukrainian hryvnias and buy dollars or euros, according to the text of NBU Resolution No. 63, which introduces greater freedom in using foreign currency across the country.
The new NBU regime liberalizes or abolishes previous restrictions on foreign currency transactions, further freeing up banks, financial service providers and customers to use foreign currency such as dollars and euros in business and daily life.
Financial institutions are being granted a six-month transition period from February to liberalize their currency controls and begin providing services to customers in currencies such as dollars and euros.
Under the new regime, after the NBU resolution begins coming into effect, customers also don’t have to provide personal data or a signature for foreign currency withdrawals below a daily limit of Hr 150,000, or roughly $5,400.
It’s not yet clear how banks will manage the roll-out of such services across their branches and ATM networks.
Until this year, Ukrainian financial service providers and their customers were faced with severe restrictions on some foreign currency transactions, resulting in inconvenience, delays and high currency exchange fees.
According to a press statement from the NBU issued on Jan. 8, as reported by Russian-language business news service Liga, some 56 previous regulatory acts on foreign currency will be made obsolete and replaced by eight new NBU decrees.
Broadly, the new NBU decrees greatly liberalize the use of foreign currency, enabling the “free use” of foreign bank accounts, and easing the movement of currency across borders.
The new currency law, which was approved by the country’s parliament in June 2018, was drafted by experts from the NBU and International Monetary Fund.