©Reuters. The EC asks to facilitate displaced Ukrainians to exchange their currency for euros
Brussels, Apr 1 (.).- The European Commission (EC) on Friday asked EU countries for a coordinated approach to allow displaced Ukrainians fleeing from the war started by Russia to change banknotes of their national currency, the hryvnia, for euros similar conditions in all Member States.
The appeal from Brussels is not a formal legislative proposal but a recommendation and seeks to “complement the humanitarian aid” offered by the EU to the more than 3.8 million people who have arrived in the member states of the bloc fleeing the Russian invasion, the institution said in a statement.
One of the “immediate” needs of the displaced Ukrainians is to be 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.
In this context, the Community Executive wants to “promote a coordinated approach in all Member States” with the aim that Ukrainian citizens have “the same conditions” to make the conversion 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,” explains Brussels.
As a result, European financial institutions have been unable to trade due to the “limited convertibility” of the Ukrainian currency and exchange rate risks.
Some member states, explains the EC, are considering launching “national programs” to support the conversion of a “limited amount” of hryvnias per person and the objective of Brussels is to make these schemes “coherent”.
Thus, the Community Executive recommends establishing a maximum limit of 10,000 grivans per person, without additional charges, at the exchange rate published daily by the National Bank of Ukraine for a period of time of at least three months.
(More information on the European Union at euroefe.euractiv.es)
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