Many Ukrainians are taking their currency to exchange offices, fearing the new tax

The National Bank has seen the impact on cash market caused by legislative innovations aimed ostensibly at making the rate more stable.

The National Bank of Ukraine claim that in recent days after the announcement and introduction of a number of changes in foreign exchange regulations the volume of cash sales significantly increased.
This was stated by the head of the Committee for the prevention of unfair currency transactions of NBU Yuri Gorshkov at a press conference on Thursday, November 22.
"Compared with last week, the daily volume of currency deposits from population grew by 50%-plus percent," – said Gorshkov. But he did not name a specific numbers. However, the representative of the National Bank said that soon hryvnia will be stable, and there is no reason for its devaluation.
Gorshkov also noted that the National Bank believe that the current level of mandatory sale of export proceeds is sufficient, and does not intend to increase it anytime soon. "50% is more than enough to meet demand," – he said.
On Monday, November 19, the National Bank took advantage of its right under the law and introduced mandatory sale of 50% of currency by exporters and at the sane time reduced terms of payment for foreign trade contracts from 180 to 90 days. The National Bank of Ukraine also ordered to convert into hryvnia currency transfers to individuals in the amount of UAH 150,000 (equivalent) or more.
Also this week the bill "On Amending Certain Laws of Ukraine on Foreign Exchange" was registered in the Parliament, which proposes to introduce the fee to the pension fund equal to 15% of the amount of cash sale. The expert community immediately noticed that the introduction of cash sales tax may shadow exchange market.
The NBU emphasize that the tax on currency sales is aimed primarily at combating speculation on the cash market.
On November 20, the relevent committee of the Verkhovna Rada withdrew the bill number 11433, which proposed to set a 15% fee to the pension fund on cash sale by natural persons. The withdrawal was made to finalize the document and to agree opinions of the Cabinet of Ministers, the National Bank and the public. 

ZN.UA