Ukraine’s central bank has imposed a temporary ban on purchases of foreign currencies by authorized banks on behalf of their customers.
The ban, which is in effect from February 25 to February 27, is the latest move by Ukraine’s National Bank aimed at supported the troubled hryvnya currency.
The central bank also increased the waiting time from three to four business days for the purchase of foreign currency through deposits in special accounts, or for making advance payments on imports worth more than $50,000.
Ukraine’s Prime Minister Arseniy Yatsenyuk criticized the move, saying it was made without consultation with the government and would not bring stability to the hryvnya and called on parliament to convene urgently to debate how to stabilize Ukraine’s financial system.
Ukraine’s hryvnya has lost about 70 percent of its value on foreign exchange markets during the past year amid the conflict in the east of the country.
On February 23, with the hryvnya trading about 9 percent lower that its level the previous week, the central bank capped payments in foreign currencies at $500,000 without letters of credit from foreign banks.