Starting Monday, March 9, the National Bank of Ukraine began exchanging non-cash foreign currency for cash to ensure banks’ liquidity. This decision was made after Oschadbank’s cash-in-transit vehicles were detained in Hungary. This information can be found on the regulator’s website.
On March 5, Hungarian authorities detained two Oschadbank armored trucks. These vehicles were transporting a total of $40 million, 35 million euros, and 9 kg of gold between Austria and Ukraine. As a result of the detention, seven bank employees were arrested and later deported from Hungary. Hungarian authorities have expressed suspicions of money laundering and possible ties to the “Ukrainian military mafia,” but Ukraine considers such accusations unfounded.
Oschadbank has not yet received its funds back. Due to the airspace closure that followed the start of Russia’s large-scale invasion in 2022, Ukrainian banks have begun using special armored transport vehicles to move foreign currency in cash across the border. Previously, dollars, euros, and precious metals were delivered by air to Boryspil Airport, but now ground routes from Europe are being used, primarily from Austria via Hungary or by other routes.
Due to logistical problems with the delivery of cash foreign currency caused by Hungary’s actions in response to Ukraine’s suspension of Russian oil transit, the NBU announced operations to ensure banks’ cash reserves:
→ On March 9, $100 million and 80 million euros were offered; bids totaling $53.1 million and 42 million euros were received from five banks; all of them were fully satisfied;
→ On March 10, $100 million and 35 million euros were offered; one bank requested $20 million and 10 million euros; the request was fully granted.
The NBU noted that current demand is moderate. This indicates that banks currently have sufficient reserves of foreign currency in cash, and the need for additional supplies is limited. Future operations will be determined based on the needs of the banking system.
Helpful tip: Despite the difficulties with cash currency, it is important to remember that the risk of theft is significantly reduced with non-cash transactions, and banks offer favorable currency exchange rates. Information provided by АнтиКредит.