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In brief

In an effort to help expand opportunities for businesses and individuals to hedge currency risks, the National Bank of Ukraine has updated its foreign exchange regulations and eased certain restrictions concerning derivative transactions.

Starting from 17 January 2021, Ukrainian banks are permitted to exchange Ukrainian hryvnia (UAH) for foreign currency under forward transactions with all their clients.

Key takeaways

  • Both local and foreign clients of Ukrainian banks may now enter into forward contracts with Ukrainian banks to sell foreign currency and purchase UAH.
  • At the same time, Ukrainian foreign exchange regulations still prohibit Ukrainian banks from selling foreign currency for UAH to clients under forwards, subject to the following exceptions:
    • the sale of foreign currency to Ukrainian clients to hedge foreign currency risks under such clients’ trade export, import transactions or loan transactions with foreign creditors or Ukrainian banks
    • the sale of foreign currency to individual clients
  • In addition, Ukrainian banks remain prohibited from transacting in swaps:
    • with foreign clients, where a Ukrainian bank exchanges UAH for foreign currency as the first leg of a swap
    • with local clients (other than individuals), where a Ukrainian bank exchanges foreign currency for UAH as the first leg of a swap


Click here to access Ukrainian Version.

For further information and to discuss what this development might mean for you, please get in touch with your usual Baker McKenzie contacts.


Serhiy Chorny is a co-managing partner and head of the Banking & Finance Group in Baker McKenzie's Kyiv office. Since 2005, he has been highly ranked by leading international and Ukrainian legal directories such as Chambers Global, Chambers Europe, Legal 500 EMEA, and IFLR1000 in various practice areas, including banking and finance, restructuring and insolvency, capital markets, structured finance and securitization, project finance and financial services.


Bogdan Dyakovych is an Associate in Baker McKenzie's Kyiv office.