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Monday, November 12, 2018

Ukraine extends mandatory foreign currency sales

Ukraine has extended a rule requiring companies to sell half of their foreign currency earnings on the domestic market by six months.

The central bank made the announcement on Monday, Reuters reports.

Ukrainian law allows the central bank to introduce the mandatory sale rule for a period of six months, after which it must either renew or phase out the rule.

The rule is aimed at supporting the Ukraine hryvnia's peg of approximately eight hryvnias to the dollar. The exchange rate was pegged at approximately five hryvnias to the dollar from April 21, 2005 ,until Oct. 21, 2008, when it was devalued as a result of the global financial crisis, according to Reuters.

Ukraine's biggest export market is the European Union, followed by Russia. More than 60 percent of Ukraine's exports go to other post-Soviet states, with Russia, Belarus and Kazakhstan the most important.