The steps announced by the National Bank of Ukraine in the near future to complete the first stage of currency liberalization may require about $5.5 billion in foreign exchange reserves, but are expected to significantly expand business opportunities, improve conditions for attracting investment and private capital participation in the restored and ultimately have a positive impact on economic dynamics, the press service of the National Bank of Ukraine said.
“Currency liberalization will cost $5.5 billion. This is necessary to give more oxygen to business and the economy,” the press service said, adding that these steps have already been taken into account in the updated forecast, which provides for the preservation of international reserves this year and next year at a level close to the current – $43-44 billion.
Representatives of the NBU specified that the completion of the first stage of liberalization includes the possibility of partial payment of new dividends, the removal of restrictions on the import of services, payment of leasing and rent, the possibility of payments on old loans and a number of easing for the work of volunteers and the purchase of goods for military needs.
At the same time, the central bank noted that individual proposals sounding today, for example, to increase the period of return of foreign currency proceeds from the export of basic agricultural products from 90 to 180 days or from 180 to 360 days – for the metallurgical industry may complicate the implementation of such liberalization.
The press service of the NBU added that by the fall of last year the overdue return of foreign currency proceeds exceeded $4.5 billion. According to representatives of the National Bank, the decision taken in mid-November on the return of foreign currency proceeds from major agro-exports within 90 days instead of 180 days had a positive impact on the foreign exchange market, including for the first quarter of this year, the inflow of foreign currency from agro-exports to the market reached $1.3 billion against $800 million in the first quarter of last year.
As reported, at the monetary briefing on April 25, the head of the NBU Andriy Pyshnyy announced in the near future steps on currency liberalization within the framework of the strategy agreed with the International Monetary Fund to ease currency restrictions.
“So far, we see grounds to complete the first stage, which provides for certain relaxations regarding new dividends, the abolition of the ban respectively on imports of services and currency liberalization of the possibility of servicing old debts. Currently, the National Bank is at the stage of finalization and final calibration of these decisions, which we intend to announce in the near future,” he said.
Taking into account the receipt of record external revenues of almost $9 billion in March, international reserves increased by 18%, or $6.7 billion – to a record $43 billion 762.7 million.
