Ukraine: Foreign Exchange (FX) UAH repatriation market information - Reminder
Following Announcement A23023, Clearstream Banking1 reminds clients that, in scope with the National Bank of Ukraine regulation on UAH repatriation coming into force on 1 April 2023, holders of the securities paying an interest derived from government bonds will have the option to receive a credit in UAH or in USD onto their Clearstream Banking account.
In order to define the currency option, holders of such securities will receive a Swift MT564 OTHR requesting whether or not the interest should be paid in USD.
Impact on clients
Upon receipt of the MT564 OTHR, clients are requested to send a Swift MT599 or Swift MT568 to the attention “PCP Unit” by Payment Date 10:00 CEST.
Clients should confirm:
- The UAH amount to be paid in USD;
- That the proceeds are for a non-Ukrainian resident.
If the market conditions do not allow Clearstream Banking to execute the FX, the client will be informed accordingly and will be credited in UAH by default.
Clients should note that principal redemption derived from government bonds, including the so-called “military bonds” will remain unrepatriable until further notice and will continue to pay in UAH.
In accordance with Announcement A23024 and the Cash services – Ukraine page on the website, Clearstream Banking reminds clients that UAH payments that are not qualified for repatriation can be either:
- Withdrawn under certain circumstances and re-aligned to a local correspondent account; or
- Re-invested into new bonds during the auctions defined by the Ministry of Finance.
Further information
For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.
------------------------------------------
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG clients using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.