This Thursday, the Verkhovna Rada (the parliament of Ukraine) considers a historic proposal to replace 25-year-old foreign exchange legislation with an entirely new law that will open our country to international investors and make it easier for Ukrainian businesses to operate globally.
Technical though it may seem, liberalization of our arcane foreign exchange controls will make Ukraine a much more investor-friendly place and will help the country take its rightful spot amongst the major European and global economies.
For nearly four years now, we at the National Bank of Ukraine (NBU) have been working to stabilize the macroeconomic situation and create a solid foundation for economic growth in Ukraine and prosperity for all who live and work here.
We have come a long way during that time. My new post-revolutionary team took over the National Bank in 2014, finding ourselves in an incredibly difficult context. Ukraine was not only experiencing military aggression from Russia in the East, but the profound economic turmoil that coincided with it — since, our team at the National Bank have worked tirelessly to stabilize the situation and tame inflation.
Today, the banking system is in better shape than it ever has been in the history of independent Ukraine thanks to the clean-up and reforms implemented since 2014. All of the obligations that the National Bank took on under the last IMF (International Monetary Fund) memorandum have been fulfilled.
External markets are also favorable for Ukraine as economies of our trade partners are recovering and commodity prices are high.
We must maintain this momentum, make life better for businesses and support investment. The time has come for large-scale foreign exchange liberalization. The proposed law moves us toward that goal.
To say it is overdue would be an understatement. The key legislation setting out our current currency control rules is a full 25 years old and it has not aged well. In the 1990s when Ukraine was struggling to tackle the Soviet legacy, set its economy on market rails and control capital outflows, highly restrictive rules on foreign currency transactions made sense. Today they are out of place and are holding back growth.
Out of Ukraine’s patchwork of foreign exchange laws, about 70 percent of the rules are about prohibiting or restricting things. This means administrative burden, delays and complications for Ukrainian businesses trading with overseas partners, foreign investors repatriating their investment or dividends, for Ukrainian freelancers doing work for overseas clients and many others.
The regulatory system we have had in place for the last quarter of a century no longer reflects the business environment in Ukraine. Our highly qualified, multilingual workforce and our innovative approach to development has seen an ever-increasing amount of interest from foreign investors looking to set up in or outsource operations to Europe.
Our tech sector is but one example: a thriving industry worth around $5 billion. We boast the largest number of IT professionals in Europe and play host to numerous multinational brands including Google, Microsoft, Samsung, Boeing, eBay, Siemens, IBM and Huawei, who all have research and development centers here.
more recommended stories
Australian senator’s call for Muslim ban is an outlier opinion
Australia, considered one of the world’s.
Trump should target us in trade war with China
The United States-Hong Kong Policy Act.
Trump trade war with China spurs ‘off the charts’ rush at Port of LA
The escalating trade war with China.
US retail sales increase strongly in July
U.S. retail sales rose more than.
Trump might get his slowdown in rate hikes, but for the wrong reason
Among the unintended consequences from President.
Paris installs completely exposed urinals near popular tourist spots
THOMAS SAMSON | AFP | Getty.
US industrial production climbed 0.1% in July, vs 0.3% increase expected
U.S. industrial production edged higher in.
Turkey slaps tariffs on US booze, cars, business groups urge diplomacy
Turkey’s government announced tariffs on American.
Charts of past currency crises show Turkey may face a lot more pain
The Turkish lira may be set.
Turkey slashes capacity of banks to bet against struggling lira
Action by Turkey’s banking regulator has.