Ukraine's central bank has ordered that letters of credit (L/Cs) must be used for currency payments of more than US$500,000.

This is the latest move by the National Bank of Ukraine (NBU) aimed at supporting the troubled hryvnia currency.

Investment rated

The L/Cs for currency payments worth over US$500,000 must be issued by investment rated foreign banks according to NBU governor, Valeriya Gontareva.

Prepayments will also be carefully checked to verify their legality she added.

Tough checks

The governor told local media that the NBU is also introducing tough checks on the purchase of foreign currency for all import transactions of US$50,000 or more.

Ukraine's conflict has hit the economy hard, with the hryvnia losing about 70 percent of its value on foreign exchange markets during the past year.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.