The Ukrainian government removes the “muzzle” from the companies. Poland may receive billions of dollars
The Government of Ukraine adopted the Law on Currency and Foreign Exchange Operations in June this year. This means that billions of frozen funds may soon go to western markets, and a large part of them may also go to Poland. Ukraine’s regulations governing currency trading, which were introduced in 1993, were relatively outdated and often criticised. Now everything seems to indicate that the situation will change.
Obsolete legislation discouraged foreign investors
For decades, the Ukrainian economy and, above all, the ways in which currencies were traded have been operating on outdated and unfavourable rules, which effectively deterred foreign investors, while millions of citizens have been forcing them to keep their savings in the proverbial jacket.
Time for change. Ukraine is ready to move to the freedom to conduct foreign exchange operations according to the European model. The Government of Ukraine adopted the Law on Currency and Foreign Exchange Operations in June this year.
What will the new law change?
The main premise of the recently signed law is “what is not forbidden is allowed”. In short, this means that if something is not provided for in the Act as a ban, you cannot be punished for it. Other changes are:
- no obligation to obtain specific licences issued by the central bank for foreign exchange operations abroad,
- no obligation to obtain a central bank licence for foreign investments.
- no limit on transactions for investments in foreign and domestic currency;
- less restrictive controls.
The National Bank of Ukraine will continue to monitor transactions in excess of 150,000 hryvnias, but the new regulations draw from entrepreneurs (and citizens) a certain “muzzle”, which has effectively blocked the Ukrainian economy for years.
Thousands of Ukrainian companies, which officially and legally carry out cross-border operations shall be carried out in total during the year 2. 5 million operations in foreign currencies. Now this number can rise dramatically, and one of the main beneficiaries of the changes can be Poland.