EU countries coordinate to make it easier for Ukrainians to exchange their currency

The countries of the European Union (EU) agreed on a coordinated approach to make it easier for displaced Ukrainians arriving in the bloc’s countries to exchange their currency, the hryvnia, for euros or other European currencies.

The Twenty-Seven adopted a recommendation that, in line with the initial proposal of the European Commission (EC), will allow Ukrainian citizens who have fled the war to exchange up to 10,000 hryvnias in banknotes per person (about 310 euros) free of additional charges and at the exchange rate published that day by the National Bank of Ukraine.

The measure, agreed at the level of ambassadors, still has to be formally confirmed by the member states and will have a minimum duration of three months, the Council of the EU, the community institution formed by all the countries of the club, reported in a statement.

However, the decision is not legally binding as it is a recommendation, so each Member State will decide whether to adhere to the criteria agreed in it or apply different ones.

The initial recommendation of the Community Executive sought to cover one of the needs “immediate” of the displaced Ukrainians, such as being able to exchange their hryvnia bills for the currency of the country they have arrived in, be it euros in one of the partners of the common currency or other currencies in the rest of the countries.

Brussels then called for a coordinated approach in all member states with the aim that Ukrainian citizens have “the same conditions” to convert regardless of where they are.

“This approach was necessary in light of the fact that the National Bank of Ukraine had to suspend the exchange of hryvnia banknotes for foreign cash in order to protect Ukraine’s limited foreign reserves.”, then explained the EC.

Consequently, European financial institutions have not been able to carry out exchanges due to the “limited convertibility” of the Ukrainian currency and the risks due to the exchange rate.