On July 21, the National Bank of Ukraine (NBU) announced a number of important changes by adjusting the official hryvnia exchange rate and imposing new limits on banking transactions.

The regulator immediately changed it by 25%, setting the rate at 36.5686 hryvnia per dollar. Since the beginning of the war, the fixed exchange rate from the NBU was 29.25 hryvnia per dollar.

This decision at the Central Bank was explained by “a change in the fundamental characteristics of the Ukrainian economy during the war and the strengthening of the US dollar against other currencies.”

From July 21, the NBU allowed banks to sell non-cash currency to citizens, subject to future placement on deposits for three months or more, without the right to prematurely terminate the contract. The monthly limit is the equivalent of 50,000 UAH.

The NBU has set a number of new limits for individuals:

• Restrictions on withdrawals from hryvnia payment cards changed from UAH 50,000 per month to UAH 12,500 per week (equivalent);
• P2P transfers abroad from cards of Ukrainian banks were reduced from UAH 100,000 to UAH 30,000;
• The limit for payments with hryvnia cards abroad is set at 100,000 UAH per month.

The bank also kept the discount rate at 25%.

NBU chief Kirill Shevchenko said that all the restrictions since the beginning of the war are temporary measures that keep the economy afloat.

However, these changes will now have a significant impact on many Ukrainians. Since the beginning of the Russian occupation, millions of citizens have had to leave the country and are still abroad.

The founder of the Kuna exchange, Mikhail Chobanyan, told ForkLog UA that the NBU restrictions could lead to increased Ukrainian interest in cryptocurrencies:

“We expect an increase in turnover and use of cryptocurrencies. 100,000 hryvnia is nothing in Europe.”

Chobanyan also believes that the limits of the NBU will be an obstacle for the volunteers, since most of the various aids are purchased from the cards of Ukrainian banks, which are owned by individuals:

“Now we will completely convert these streams into crypts. As Aid For Ukraine, we have a completely independent infrastructure for the delivery of humanitarian aid materials. Independent finance, logistics and warehouses in the EU, customs and cross-border transport, warehouses in Ukraine and the “last mile” to the front. Now we will open this infrastructure to all volunteers.”

The NBU said the new limits do not threaten volunteering. In April, the regulator brought relief for such activities. Individuals can buy and use foreign currency abroad to purchase defense goods within the limit of 400,000 UAH per month.

Chobanyan noted that the “aggressive policy of the NBU” was known before the war and that only Ukrainian banks and budget would lose from the new restrictions.

Recall that on February 24, the Central Bank limited cash withdrawals and fixed the hryvnia exchange rate. In April, the regulator placed additional restrictions on citizens’ cross-border transactions, which also affected cryptocurrency transactions.

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