The NBU extended the list of freely convertible currencies of the first group

НБУ расширил список свободно конвертируемых валют первой группы

The national Bank of Ukraine has updated the Classifier of foreign currencies and Bank metals, which in recent times underwent changes in 2005 To the Board of the National Bank approved resolution No. 269 dated 19 April 2016 “On amendments to the NBU Classifier of foreign currencies and Bank metals”. According to the document, a list of freely convertible currencies of the first group increased from 11 to 24 foreign currencies.

The current version of the Classifier is divided currencies into three groups:

  • Group 1: freely convertible currencies that are widely used to make payments for international transactions and are sold on major world currency markets and allowed for investment in Ukraine and Bank metals;
  • Group 2: freely convertible currencies that are not widely used to make payments for international transactions and are sold on major world currency markets;
  • Group 3: non-convertible currency.

The updated Classifier retained the division into three groups, but has refined the principles by which currencies are included in group 1. In addition, it provides an exhaustive list of currencies in each group.

So far, 1 group belonged to 11 currencies, special drawing rights (SDRs) and four Bank metal (gold, silver, platinum, palladium).

The national Bank added to the list of all currencies of member countries of the European Union that are not in the Euro zone, namely the Bulgarian Lev, Polish zloty, Romanian LEU, Croatian Kuhn, Czech crown, Hungarian Forint. 1 the group includes also the yuan Renminbi, which will be included in the list of reserve currencies of the International monetary Fund from October 1, 2016 in Addition, 1 group included currencies that are actively traded on world markets, but previously belonged to other groups. Among them – won of South Korea, Hong Kong dollar, Mexican peso, new Zealand dollar, new Israeli shekel, Singapore dollar. But from the 1st group to the 2nd translated Icelandic Krona. As a result, only 1 should be 24 foreign exchange, SDRs, and four Bank metal.

The expansion of the list of the 1st group specified on currency will allow us to extend to them the current procedure for implementation of investments in Ukraine and repatriation from Ukraine. Since the implementation of investments in Ukraine is allowed only in currencies of the 1st group of the classifier, the extension of the list of currencies of this group will simplify the process of investments from countries where the relevant currencies are used, in particular from EU countries.

After making the Renminbi yuan in the composition of reserve currencies by the International monetary Fund, the national Bank can add it to the composition of the currencies which make up the international reserves of Ukraine.

The increase in the components of group 1 will also expand the opportunities for exchange in the cash market and trading the foreign currencies on the interbank currency market. At the same time on an updated list of currencies from group 1 will be subject to the requirements for mandatory sale of foreign currency revenues. But it will not have a material impact on the operations of the business as from the beginning of 2016, 93% of all foreign currency inflows into the country in US dollars and euros. At the same time, for currencies that were not previously included in group 1 and will be included into it after the update of the Classifier, accounting for only 0.03% of foreign exchange earnings.

The changes will take effect from may 4, 2016.

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