The central bank of Ukraine has capped the limit on cash withdrawals in national currency and prohibited withdrawals in foreign currency. The steps, according to the monetary authority, are intended to safeguard the smooth operation of the country’s financial system while the country is under martial rule as a result of Russia’s military offensive.
Withdrawals Limits As Per The National Bank of Ukraine:
On Thursday, while individuals waited in line at ATMs and bank branches, the National Bank of Ukraine (NBU) passed a resolution restricting daily cash withdrawals in local currency to 100,000 hryvnias (about $3,350), with the exception of wages and social payments. The regulator also made it illegal to withdraw cash from foreign currency accounts.
The decision followed, in the early hours on Feb. 24, after Russia initiated a “special military operation” in Ukraine, as declared by President Vladimir Putin. Many Ukrainians have fled major cities, including the capital Kyiv, as a result of rockets striking locations across the nation and rumours of Russian tanks crossing the border amid what has become a full-scale Russian invasion.
The NBU urged banks to continue functions, notwithstanding President Volodymyr Zelensky’s declaration of martial law. Foreign exchange activities stand suspended with the exception of client sales of foreign currency. The official hryvnia exchange rates have been set at 29.25 hryvnias to $1 and 33.17 hryvnias to €1, according to the authorities.
The central bank has put a stop to cross-border foreign currency payments and barred Ukrainian banks from processing debit transactions on Russian Federation citizens’ accounts. The restriction also applies to the creation and distribution of electronic money, as well as the putting of monies into electronic wallets.
Other digital assets, such as cryptocurrencies, are not included in the text, despite Ukraine’s efforts to regulate them. The East European nation’s government, which ranks among the region’s leaders in terms of crypto adoption, recently enacted a bill “On Virtual Assets,” which names the NBU as one of the market’s primary regulators. The legislation, however, has yet to take effect.
The limits, according to the National Bank of Ukraine, do not apply to transactions with and by the Ukrainian government, firms and organizations engaged in mobilization duties, or payments made under special permissions issued by the monetary authority.
The NBU highlighted that all cashless payments are limitless, ATMs must be stocked with cash without restriction, and banks must ensure that their branches operate without interruption.