President signs law on NBU, NBU moves into e-commerce (08/20/00)

President signs law on NBU, NBU moves into e-commerce

Eastern Economist

KYIV - President Leonid Kuchma this week signed a law amending existing legislation on the National Bank of Ukraine (NBU).

Passed by the Verkhovna Rada on July 13, the law changes the status of the NBU Supervisory Council from an administrative body to a management body on the same level as the NBU.

The number of members of the Supervisory Council will be increased from 14 to 15. Up to seven members must be appointed both by the Verkhovna Rada and the President, while the 15th member is the chairman of the NBU.

The NBU intends to regulate activity in electronic commerce using its own norms until such time as e-commerce legislation is passed. The bank has developed a project called "Requirements for the Organization of E-Commerce in Ukraine," which regulates the organization of electronic stores, formation and execution of electronic orders, payment for orders using a variety of payment instruments (including bank cards), a bank-client system and the organization of bank services using new technologies.

The gross international currency reserves of the NBU as of August 3 were $1.2 billion (U.S.), compared to $1.035 billion on July 1, according to NBU Hard-Currency Regulations Department Director Serhii Yaremenko. The main source of replenishing the NBU currency reserves is purchases on the inter-bank market.

In the first half of 2000 the NBU bought $729 million. Mr. Yaremenko added the NBU plans to purchase another $500 million in the second half of this year. The NBU's foreign currency reserves are the main source of servicing Ukraine's domestic debt. In the first half of the year internal payments were $955 million.

The NBU changed the rules for moving cash and other payment documents across the border without individual licenses. New regulations for carrying Ukrainian currency, foreign currency, payment documents, other bank documents and payment cards across the border of Ukraine will go into effect on October 1. According to the new provisions, an individual crossing the border of Ukraine can carry up to $1,000 (U.S.) on his/her person on the condition of a verbal declaration, or the equivalent in another currency at the official exchange rate of the hryvnia to the dollar on the day of the crossing.

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