Ukraine's central bank on 10 April cancelled the requirement that importers must use letters of credit (L/Cs) to purchase goods.

Earlier this year, with the hryvnia trading about 9 per cent lower than its level the previous week, the central bank capped payments in foreign currencies at $500,000 without L/Cs from foreign banks (DC World News, 9 March).

Temporary ban

The temporary requirement applied to import transactions under direct contracts with producers of certain vitally important goods.

These included oil, petrol, diesel fuel, certain drugs treating patients with cancer and military goods.

The ban in late February was imposed by the National Bank of Ukraine in its efforts to support the troubled hryvnia currency.

Opposition

But the ban was opposed by Prime Minister Arseniy Yatsenyuk. He complained that the central bank acted without consultation with the government and argued that the measure would not bring stability to the hryvnia.

Conflict has hit Ukraine's economy hard, with the hryvnia losing around 70 per cent of its value on foreign-exchange markets during the past year.

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