The National Bank of Ukraine (NBU) recently announced the implementation of significant currency liberalization measures, the largest since the beginning of the full-scale war in the country. These measures are aimed at reducing restrictions on businesses and currency controls that were put in place to protect the hryvnia from collapse. NBU Governor Andriy Pyshnyy expressed hope that these measures, along with other actions by the central bank, would help Ukrainian businesses thrive and attract private capital to aid in the recovery of the economy. The measures, which came into effect on May 4, include the removal of currency restrictions on the import of goods and services, the ability for businesses to repatriate new dividends, and easing of restrictions on external loans and transfers of foreign currency.
The NBU also stated that these measures would lead to an increase in export revenue for Ukraine and help local businesses enter new markets, including those from which Russian companies have been displaced due to sanctions. Following a significant drop in GDP after the full-scale invasion, the International Monetary Fund (IMF) predicted potential growth of 3.2% in 2024 and up to 6.5% in 2025. NBU Governor Andriy Pyshnyy emphasized the importance of Ukraine’s victory becoming part of central banks’ mandates, highlighting the country’s resilience and the need for continued support from the international community.
In a speech at the conference “Central Bank Independence in a Changing World,” Pyshnyy shared the NBU’s efforts and emphasized the importance of Ukraine’s success in overcoming challenges as an example for other central banks. The NBU’s implementation of currency liberalization measures marks a significant step towards economic recovery and rebuilding in the aftermath of the invasion. These measures are intended to create opportunities for Ukrainian businesses to grow, attract investment, and expand their operations both locally and internationally.
The removal of currency restrictions on imports, the ability to repatriate dividends, and easing of restrictions on loans and transfers are expected to support businesses in their recovery efforts. Additionally, the NBU aims to increase export revenue, attract foreign investment, and enable Ukrainian businesses to access new markets. The measures implemented by the NBU demonstrate a commitment to supporting economic growth and stability in Ukraine, despite the challenges the country has faced in recent years. By opening up opportunities for businesses and easing financial constraints, the central bank aims to lay the foundation for a stronger and more resilient economy in the years to come.
