The National Bank allowed Ukrainians to buy foreign cash currency using non-cash funds up to 100 thousand hryvnias per day ($2.4 thousand)

The National Bank of Ukraine (NBU) has officially allowed banks to launch a new type of foreign currency purchase for individuals: cash foreign currency for non-cash hryvnia, with payment from a current account up to a maximum of 100,000 hryvnias per day.

This clarification is contained in NBU letter No. 40-0009/41356, which has come into the possession of journalists.

In practice, this could involve payment, for example, from a card account: a person transfers 100,000 UAH ($2,400) to the bank from their card and receives cash dollars at the bank counter. At the current average exchange rate of 40.90 UAH/$, 100,000 UAH can be exchanged for $2,400.

This type of currency purchase should be more advantageous than the usual cash exchange if the money is received on a card (e.g., salary). To purchase $2,400, an individual would first need to withdraw 100,000 UAH from an ATM or cashier, which often incurs a standard 1% commission. For 100,000 UAH, this amounts to 1,000 UAH. However, when buying cash foreign currency with a card, this commission may not apply, as explained by the banks.

The new method of currency purchase for individuals has become the fourth option during wartime. The previous three options were:

1. Purchasing cash foreign currency at the cashier for cash hryvnia. The NBU lifted restrictions on the amount in December 2023, but mandatory financial monitoring for transactions over 400,000 UAH remains (information is automatically sent to the State Financial Monitoring Service).
2. Purchasing non-cash currency from a current account with the right to immediate withdrawal up to 50,000 UAH per month.
3. Purchasing non-cash currency with mandatory placement in a three-month deposit up to 200,000 UAH per month.

According to the banks, some financial institutions had already been conducting 100,000 UAH currency exchanges from non-cash to cash for select clients before the NBU letter No. 40-0009/41356, although this service was not widespread and was only offered to select clients.

Banks operated on the principle “what is not prohibited is allowed,” based on the simple logic that during wartime, the NBU allows individuals to withdraw up to 100,000 UAH per day from their accounts (regardless of the type: current, card or deposit), and then nothing prevents a person from buying dollars or euros at the cashier. Therefore, it makes sense to allow people to act directly, paying for foreign currency non-cash and receiving it in cash.

However, this was the approach of a few banks, while most sent queries to the NBU on the matter. Now, the NBU has given an official clarification, stating that it sees nothing illegal in such currency exchanges but reminded banks to continue financial monitoring. This means banks must continue to question clients about the source of their funds at the slightest suspicion. Financial institutions have been doing this regularly since 2020 when opening and servicing accounts.

Although the NBU has allowed the purchase of cash foreign currency for non-cash hryvnia up to 100,000 UAH per day, it is not yet known when banks will widely launch this service. This should be checked with the contact centers of financial institutions. Letter No. 40-0009/41356, signed by NBU Deputy Chairman Dmytro Oliynyk, specifies that banks are required to inform their clients about the possibility of such currency exchanges.