Do you know dollar purchase rules for legal entities are changing?

Do you know dollar purchase rules for legal entities are changing?

The rules for buying dollars for legal entities have changed in Ukraine in 2021. It has happened as part of the planned market liberalization.

According to Vasily Nevmerzhitsky, Advisor to the Chairman of the Board of CreditWest Bank, all legal entities have the right to buy foreign currency without obligations in the form of foreign economic contracts. At the end of last year, the National Bank announced an easing for 2021.

This means any company will be able to buy currency on the interbank market, as a person does at an exchange office.
«This will increase the liquidity of the foreign exchange market in the medium term. But at the first stage, an increase in demand for the currency is not excluded. It will provoke an increase in the price of the dollar. The NBU understands this well, so they are in no hurry to implement this weakening and calculate the optimal moment. To minimize the impact on the market, it is better to do this with a steady trend towards the strengthening of the hryvnia.»

What rules have already changed in 2021?

✅ Banks and financial institutions were allowed to buy currency from the population in self-service terminals.

✅ You can transfer currency abroad and receive it with a digital passport in the mobile app «Action».

✅ Clients, legal entities and individuals were allowed to make transactions for the sale of foreign currency on a «forward» basis (a future purchase and sale agreement).

«Forward is a classic instrument for hedging currency risks or making money on fluctuations in currency rates, – says Elena Korobkova, executive director of the Independent Association of Banks of Ukraine. For example, for a company purchasing raw materials abroad, a foreign exchange forward allows it to determine the exchange rate in advance and eliminate the risk of unexpected losses due to market fluctuations on the day of a future purchase. People rarely need such hedging (for example, to pay for education or medical treatment abroad), but can use forwards to make money. However, fluctuations in the exchange rate can lead to losses.»