The National Bank of Ukraine has eased emergency foreign currency restrictions for individuals, expanding daily cash withdrawal limits and monthly purchase caps starting August 11. Ukraine's central bank assured the public that the policy change followed extensive economic calculations and presents no threat to the country's international currency reserves.
Under the updated rules, the monthly limit on buying cashless foreign currency has been quadrupled from 50,000 hryvnias to 200,000 hryvnias per person. The central bank also doubled the daily limit for cash currency withdrawals from 100,000 hryvnias to 200,000 hryvnias, while raising monthly caps on payments for foreign goods, services, and housing rent from hryvnia accounts to 200,000 hryvnias. Separate transaction limits were established for transfers from foreign currency accounts for similar services abroad.
Exchange Rate Changes and Inflation Factors
The NBU originally established strict capital controls and individual transaction caps in February 2022 to protect financial stability and preserve foreign exchange reserves following Russia's full-scale invasion of Ukraine. In statements to news outlet LIGA.net, NBU Deputy Governor Yuriy Heletiy explained that the central bank initiated a lengthy review to update the parameters in light of subsequent devaluation and inflation. He noted that when the restrictions were first introduced in 2022, the official exchange rate stood at 29.3 hryvnias per US dollar, compared to the current rate of 44.7 hryvnias per dollar.
Heletiy said that economic conditions and price levels had changed significantly, particularly in foreign countries hosting Ukrainian migrants. He described the revision as a necessary and fair adjustment based on stable transaction data collected by regulators, which tracked card spending and cash withdrawal volumes both domestically and internationally.
Market Pressure and Legal Currency Channels
Central bank officials expect the expanded allowance for cashless transactions to shift consumer demand away from the cash market, thereby reducing upward pressure on paper currency rates. NBU Governor Andriy Pyshnyy said that by modernizing the limits, the central bank aims to channel foreign exchange demand into legal banking avenues and discourage activity in the grey market.
Pyshnyy added that the regulator anticipates significant positive economic benefits from the liberalization measure, while maintaining a very controlled and moderate effect on Ukraine's overall foreign exchange reserves. Central bank data indicates that current spending patterns remain steady, allowing officials to execute the policy easing without risking systemic stability.
