The National Bank of Ukraine (NBU) has temporarily banned the sale of foreign currency for investments being made abroad and early repayment of loans. This is stipulated in NBU resolution No. 49.

"The purchase of foreign currency for hryvnias is temporarily banned on the interbank forex market for the early repayment by residents of loans and borrowings (financial aid) in foreign currency under agreements with nonresidents, including in case of the conclusion of additional agreements to loan agreements, as well as for coverage by insurers of part of insurance reserves and investment being made abroad," reads the document.

The resolution became effective as of February 7, 2014. It will be in effect until the NBU cancels it.

The resolution says that the change in the rules of the monetary market is aimed at securing the stability of the hryvnia, safeguarding bank depositors' interests, ensuring the stability of the banking system, and guaranteeing settlements.

The resolution also temporarily sets a zero rate for reserving funds under agreements on the raising of funds in foreign currency from nonresidents by banks for the period equal or less than 183 calendar days.

The NBU obliged banks to fulfill orders of client companies and/or individual businessmen to transfer money in any currency (apart from payments to the budget and social payments), including to receive cash (apart from payment of wages, pensions, scholarships, social payments and payments for business trips) within the sum left on the current accounts of clients as of early working day, not taking into account sums that will be sent to the current account of clients during the working day.

In addition, the resolution obliges banks to preliminary send funds in hryvnias to the separate analytical account 2900 (bills payable on transactions on the sale and purchase of foreign currency, banking and precious metals for clients of banks) when banks buy foreign currency under order companies and individuals-businessmen. The funds could be sent to buy foreign currency no earlier than the sixth working day after the day when the hryvnias were sent to the said account.

The resolution also says that banks form a register on the purchase of foreign currency, which is sent to the NBU using e-mail, and its copy is sent to the NBU's territorial department where the bank and the company are located next working day after receiving an application to buy foreign currency.

Interfax