Currency liberalization in Ukraine: a fundamental step forward
Since February 7, 2019, the new Law on Currency has taken effect. It shifts the authority on certain capital flow restrictions from the level of Parliament to the level of regulatory acts issued by the National Bank of Ukraine.
In contrast to the previous post-Soviet spirit of strict capital controls, the new law is based on the fundamental principle: “Everything which is not specifically forbidden is allowed”.
The law was adopted within the framework of the EU-Ukraine Association Agreement and aims to facilitate free capital movements in the longer term. However, certain currency restrictions still remain – although much more liberal than the previous ones. A continued stabilization of the economic situation in Ukraine, together with deeper EU integration, could lead to the elimination of remaining capital controls in the future.
