NBU eases currency supervision over exporters' operations

The National Bank of Ukraine (NBU) has simplified currency supervision over exporters' operations involving the use of a letter of credit.

"Henceforth, control over compliance with deadlines for settlements on such operations may be terminated from the moment when the enterprise receives funds from the bank within the limits of the letter of credit," the message reads.

It is noted that simplification will reduce the administrative burden on banks and businesses. It will also promote the use of trade finance instruments. Payment by letter of credit can be made earlier from actual settlements under a foreign economic contract, making this instrument useful for exporters.

"In addition, the performance capabilities for insurance (reinsurance) brokers to conduct currency operations in insurance activities have been expanded. In particular, they are authorized in certain cases to carry out currency operations under insurance contracts with non-resident insurers," the NBU says in a statement.

Previously reported that the bulk of corn shipment from Ukraine in 1H 2020 was made by 15 companies.