A new currency law came into effect in Ukraine on Feb. 7, marking the start of the most radical overhaul of the currency environment for over a quarter of a century.
The new law aims to “liberalize currency circulation” in Ukraine, introducing substantial changes for both Ukrainians and foreigners resident in the country.
The new law, which replaces an obsolete one passed back in 1993, scraps 48 regulations. Under the new law, it is now possible to buy foreign currency like dollars and euros online. An individual can convert Hr 150,000, or about $5,500, per day. Foreign currency can even be bought on credit money, as the National Bank of Ukraine, the country’s central bank, announced additionally on Feb. 6.
Currently, several local banks announced they will support the new currency exchange options in their mobile apps. That includes the biggest bank, the state-owned PrivatBank, the private Russian bank Alfa-Bank, and the private Ukrainian bank Universal Bank (also known as Monobank after its app).
Some of the limits have become looser. Individuals can transfer 50,000 euros abroad every year, a slight increase on the $50,000 limit in place before. The daily limit for individuals for transferring money abroad without a license rose to $5,500, while it used to be $1,800.
There are also changes for non-residents visitors to Ukraine, and for foreigners living and working here. NBU spokesperson Oleh Sorochan told the Kyiv Post the new law actually “equalizes the possibilities for citizens and non-citizens of Ukraine.”
For instance, there are now no limits for foreigners in Ukraine on buying foreign currency such as dollars in local banks, and an individual no longer needs to present their passport to exchange money. Earlier, foreigners could buy dollars only with the hryvnia left from the initial sum they arrived in Ukraine with. Now there’s only one limit – up to $5,500 a day.
As for non-residents who registered in Ukraine as entrepreneurs, they can open up bank accounts and use them as Ukrainian citizens do, including to buy foreign currency with hryvnias and to work with foreign contractors.
Non-resident entrepreneurs who receive foreign money from abroad are no longer obliged to convert 50 percent of the sum into hryvnias. However, that is still mandatory for Ukrainians, although the sum is to be reduced to 30 percent starting March 1.
