Ukraine's National Bank limits card payments abroad for real estate, watches, jewelry, precious metals

September 9, 2024 16:08

The National Bank of Ukraine (NBU) has imposed a monthly limit of UAH 100,000 ($2,400) on card payments abroad for watches, jewelry, precious stones, and coins, Report informs referring to Interfax-Ukraine.

For transactions with real estate agents, the limit is set at UAH 500,000 ($12,200) per month, according to a press release issued by the regulator on September 9.

"The necessity of this measure was revealed through an NBU analysis involving banks and payment systems. It confirmed attempts to bypass the restrictions on purchasing banking metals outside Ukraine, which the NBU had imposed during the martial law period, as well as operations with foreign real estate agents and managers," the statement said.

These new restrictions are outlined in Resolution No. 108, dated September 6, 2024, and were officially published on Monday, September 9. According to the resolution, the limits apply to all foreign currency accounts of individuals held in Ukrainian banks. The monthly limit is up to UAH 100,000 ($2,400) for purchases under merchant category codes 5094 (precious stones, metals, and jewelry), 5944 (watches, jewelry, and silverware), and 5972 (coin and stamp shops). The monthly limit for transactions under merchant code 6513 (real estate agents and managers) is up to UAH 500,000 ($12,200).

The NBU expects that tightening currency controls will prevent unproductive capital outflow from the country, helping to maintain international reserves at a sufficient level and stabilizing the foreign exchange market, which will enable the gradual easing of currency restrictions.

"This limit aligns with the general limit set by the NBU for foreign transactions using payment cards issued by Ukrainian banks linked to national currency accounts," the central bank stated.

According to the NBU, the UAH 500,000 ($12,200) limit meets the needs of Ukrainians living abroad or traveling internationally, satisfying 98% of bank customers conducting such transactions.

"This measure will help prevent attempts to circumvent the NBU's restrictions on these types of operations and avoid significant capital outflows from Ukraine," the NBU concluded.