RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of August 10, 2005 No. 281

About approval of regulatory legal acts of the National Bank of Ukraine

According to Articles 44, "About the National Bank of Ukraine" and Sections II and III of the Decree of the Cabinet of Ministers of Ukraine of February 19, 1993 No. 15-93 "About system of currency control and currency exchange control" and for the purpose of streamlining of transactions in the interbank foreign exchange market of Ukraine the Board of the National Bank of Ukraine DECIDES: 45 and 47 Laws of Ukraine

1. Approve Regulations on procedure and terms of trade in foreign currency it (is applied).

2. Approve Rules of functioning of System of the agreement confirmation in the interbank foreign exchange market of Ukraine of the National Bank of Ukraine and transfer (transfer) of means on separate transactions with foreign currency and bank metals.

3. Norma Polozheniya about procedure and terms of trade in foreign currency have retroactive effect in time if their application leads to mitigation or cancellation of responsibility.

4. To department of currency control (O. A. Scherbakov) after state registration in the Ministry of Justice of Ukraine to bring contents of this resolution to the attention Operational and territorial administrations of the National Bank of Ukraine and banks for use in work.

5. To impose control over the implementation of this resolution on Department of currency control (O. A. Scherbakov).

6. The resolution becomes effective in 10 days after state registration in the Ministry of Justice of Ukraine.

Approved by the Resolution of Board of the National Bank of Ukraine of August 10, 2005 No. 281

Regulations on procedure and terms of trade in foreign currency

Section I. General provisions

1. This Provision establishes procedure and terms of trade in foreign currency in the interbank foreign exchange market of Ukraine and in the international foreign exchange markets.

2. The provision is developed according to Articles 4, 6 and 11 Decrees of the Cabinet of Ministers of Ukraine of February 19, 1993 No. 15-93 "About system of currency control and currency exchange control" (further - the Decree), and also articles 7 and 45 of the Law of Ukraine "About the National Bank of Ukraine".

3. The National Bank of Ukraine (further - National Bank) performs foreign exchange trade for the purpose of ensuring accomplishment of the functions assigned to it by the legislation of Ukraine.

4. In the Provision terms are used in the following value:

arbitrage operations on the terms of margin trading (further - arbitrage operations) - non-cash transactions which provide accomplishment of two counter obligations on purchase and sale of one foreign currency for other foreign currency and are performed without real delivery of currency in the international foreign exchange market for the purpose of profit earning from change of the currency rate or hedging of currency risks;

currency transaction on conditions "that" is currency transaction under the agreement which conditions provide accomplishment of this transaction in day of the conclusion of the agreement;

currency transaction on conditions "that" is currency transaction under the agreement which conditions provide accomplishment of this transaction in the first working day after day of the conclusion of the agreement;

currency transactions on conditions "swap" - currency transactions under the agreement which conditions provide purchase (sale, exchange) foreign currency with its return sale (purchase, exchange) for certain date in the future with fixing of conditions of these transactions (rates, amounts, value dates, etc.) during the conclusion of the agreement;

currency transaction on conditions "spot" - currency transaction under the agreement which conditions provide accomplishment of this transaction for the second working day after day of the conclusion of the agreement;

currency transaction on conditions "forward" - currency transaction under the forward agreement which conditions provide accomplishment of this transaction (with delivery of currency under the agreement) later than for the second working day after day of the conclusion of the agreement;

the currency derivative is the standard document certifying the right and/or the obligation to purchase, sell and/or exchange foreign currency on the conditions determined in this document in the future;

own transactions of bank on purchase (sale, exchange) of foreign currency (own transactions) are the operations performed based on the banking license and the general license for implementation of currency transactions within limits of open foreign exchange position of bank;

the guarantee fee - means of the client at the expense of which the losses arising during implementation of arbitrage operations are compensated;

the request - the offer on purchase or sale of foreign currencies / bank metals which contains essential terms of transaction and moves the subject of the market in National Bank by System of the agreement confirmation in the interbank foreign exchange market of Ukraine of the National Bank of Ukraine and/or functionalities of trade and information systems (Bloomberg, Thomson Reuters, etc.);

the foreign currency is foreign currency in the value determined by the paragraph the fourth Item of the first of article 1 of the Decree;

The qualifier is the Qualifier of foreign currencies and bank metals approved by the resolution of Board of the National Bank of Ukraine of February 04, 1998 No. 34 (in edition of the resolution of Board of the National Bank of Ukraine of April 19, 2016 No. 269);

means of the client are money in national or foreign currency or their equivalents which are considered on flowing (including accounts on the special mode of their use) and the supplementary (deposit) accounts;

purchase of foreign currency is transaction on purchase of foreign currency for hryvnias;

the interbank foreign exchange market of Ukraine is set of the relations in the sphere of foreign exchange trade in Ukraine between subjects of the market, between subjects of the market and their clients (including nonresident banks), between subjects of the market and National Bank, and also National Bank and its clients;

the international foreign exchange market is set of the relations in the sphere of foreign exchange trade outside Ukraine between subjects of the market and foreign partners which on behalf and at the expense of subjects of the market perform foreign exchange trade outside Ukraine;

exchange (converting) of foreign currency is transaction on purchase (sale) of one foreign currency for other foreign currency;

sale of foreign currency is transaction selling foreign currency for hryvnias;

subjects of the market - authorized banks, authorized financial institutions;

the foreign exchange trade is purchase, sale, exchange of foreign currency, implementation of transactions with currency derivatives;

The system of the agreement confirmation in the interbank foreign exchange market of Ukraine of the National Bank of Ukraine (further - System of the agreement confirmation) is complex of organizational technical means which provides the agreement confirmation (agreements) on purchase sale of foreign currency and bank metals for hryvnias during time which is established and changes based on the resolution of Board of the National Bank of Ukraine;

authorized financial institution - financial institution which obtained the general license for implementation of currency transactions granting the right to foreign exchange trade;

the forward agreement - the standard document which certifies the obligation of person to acquire (to sell) foreign currency in certain time and under certain conditions in the future with fixing of the prices of such sale during the conclusion of such agreement.

Other terms used in this Provision are applied in the values determined by the legislation of Ukraine.

5. Foreign exchange trade in the interbank foreign exchange market of Ukraine, in the international foreign exchange market is allowed to perform exclusively National Bank and subjects of the market (or with such subjects).

6. Subjects of the market have the right to perform purchase, sale of foreign currency only in the interbank foreign exchange market of Ukraine.

7. Subjects of the market have the right to perform transactions on exchange of foreign currency in the interbank foreign exchange market of Ukraine and/or in the international foreign exchange market.

Subjects of the market have the right to perform exchange of foreign currency in the international foreign exchange market according to the rules existing in this market taking into account the restrictions set by this Provision and other regulatory legal acts of National Bank.

8. The procedure and terms of trade in cash foreign currency in exchange bureaus of foreign currency and in own operational halls of bank, financial institution are determined by separate regulatory legal acts of National Bank.

9. The procedure and terms of trade in bank metals are determined by separate regulatory legal acts of National Bank.

10. The current trading activities in foreign currency is the following:

calculations for export and commodity import without payment deferral or with delay which according to the agreement does not exceed the terms established by the legislation of Ukraine for implementation of such calculations;

calculations in the territory of Ukraine between residents - subjects of managing for goods based on the individual license of National Bank.

11. The current uncommercial foreign currency transactions is the following:

the translations on compensation, grants, pensions, the alimony, government assistance, financial support, the help of relatives, the charitable and humanitarian assistance, payments and compensations, including payments for compensation of the damage caused to workers owing to mutilation, occupational disease or other undermining health connected with accomplishment of labor obligations by them, to the victims of political repressions, the victims of Nazi prosecutions, members of their families and heirs, compensation on insured events, awards, prizes, the inherited means, means according to gift agreements, the means saved on accounts and profits on them;

payments based on sentences, decisions, determinations and resolutions of judicial, investigating and other law enforcement agencies;

payment of the expenses connected with the death of citizens (transportation expenses and expenses on burial);

payment of expenses to foreign judicial, investigating, arbitral, notarial and other authorities (including tax payment, charges and other obligatory payments), expenses of foreign lawyers;

payment of charges (duty) on the actions connected with protection of the rights to objects of intellectual property right including fee which are provided by patent authorities of other countries, and services of patent agents abroad;

payment for the account of means of physical persons of expenses on treatment in medical institutions of other state, and also payment of expenses on transportation of patients;

payment for the account of means of physical persons of expenses on training and training in educational institutions of other state, expenses on carrying out tests, examinations and so forth;

payment by physical persons of participation in the international symposiums, seminars, conferences, the congresses, exhibitions, fairs, cultural and sporting events, and also other international meetings which will take place in the territories of the foreign countries;

payment of expenses of physical persons on acquisition of literature and subscription editions which are published abroad;

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