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Ukraine’s Central Bank: No plans to allow use of dollars, euros in domestic settlements

“Settlements in Ukrainian territory should be handled in the national currency only, so we see no need to change this principle,” Churiy told journalists.

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“We are aware that some payments are unofficially made in foreign currency, but we believe that if we continue the policy of stabilizing macroeconomy and curbing inflation, confidence in the national currency will be restored. It is gradually being restored now,” he said.

UNIAN memo. The law of Ukraine on currency and forex operations, passed by the Verkhovna Rada on June 21, 2018, and enacted by the president on July 4, 2018, will become effective on February 7, 2019.

The law foresees the cancellation or liberalization of more than 20 restrictive measures on Ukraine’s forex market. In particular, the period for settlements under export and import contracts will be doubled; currency control over operations worth up to UAH 150,000 (about US$5,330) will be lifted.

In addition, the law allows the free use of legal entities’ accounts abroad, the conclusion of currency forward contracts to hedge transactions and operations on accounts of non-resident legal entities in banks of Ukraine.

Individual licenses for currency transactions will also be canceled while online forex trade by individuals will be launched. What is more, the limit on currency transfers abroad for individuals without opening bank accounts will be increased to UAH 150,000 (about US$5,330).