More controls on foreign-currency

KYIV – Ukraine’s central bank imposed a temporary ban on purchases of foreign currencies by authorized banks on behalf of their customers. The ban, in effect from February 25 to February 27, was the latest move by the National Bank of Ukraine aimed at supporting the troubled hryvnia. The central bank also increased the waiting time from three to four business days for the purchase of foreign currency through deposits in special accounts, or for making advance payments on imports worth more than $50,000. Prime Minister Arseniy Yatsenyuk criticized the move, saying it was made without consultation with the government and would not bring stability to the hryvnia. Mr. Yatsenyuk also called on Parliament to convene urgently to debate how to stabilize Ukraine’s financial system. 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. On February 23, with the hryvnia trading about 9 percent lower than its level the previous week, the central bank capped payments in foreign currencies at $500,000 without letters of credit from foreign banks. (RFE/RL, based on reporting by the Associated Pres, UNIAN and zn.ua)