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National Bank of Ukraine intends to stabilize currency rate by legal means

The National Bank of Ukraine (NBU) intends to stabilize the currency market by introducing a law that criminalizes attempts to sell euro or dollar notes on the black market.

“The unofficial sale of foreign currency notes will be seen as tax evasion instead of an administrative non compliance. We’re essentially speaking about large sums that are being exchanged on the black market.We plan to counter this trend by introducing a criminal liability,” said Chairman of the NBU’s committee for the prevention of unlawful foreign exchange operations Yuri Horshow.

On November 16, the parliament passed a bill that taxes the sale of foreign currency by 15%, the proceeds of which are going to the Pension Fund. It has been noted that this bill has fostered the growth of the black currency market.

However, according to Harshkov the new bill would reduce the exchange rate volatility by eliminating the speculation on foreign currency exchange rates.

“We had a sticky situation with the U.S. dollar exchange rate and we managed to clear it up with artificial means. A large number of people are eager to profit from the situation,” added Harshkov.

He noted that speculator have involved a great part of the population in a currency pyramid scheme, and that the media created a panic around the situation by spreading out pessimistic forecasts for the exchange rate.

“We’re staving to create the possibility for people to make all currency operations at banks, and we encourage Ukrainians who travel abroad to use payment cards. We’re looking into the possibility to restrict the sum of a cash payment. I’d like to point out that during the Europ 2012, almost all foreign fans used cards for payments,” concluded Harshkov.

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