Refugees from Ukraine will be able to exchange hryvnia cash in the Netherlands

On May 25, 2022, Dutch Finance Minister Sigrid Kaag sent a letter to both houses of the country's parliament about the government's plans to exchange Ukrainian hryvnia cash brought in by Ukrainian refugees. Persons under the temporary protection of the Netherlands will be allowed to exchange the Ukrainian currency for the euro, based on the amount of 10 thousand hryvnia per person.

In most European countries, including the Netherlands, it is currently impossible to exchange cash Ukrainian hryvnias for euros (both in banks and exchange offices). At the same time, refugees from Ukraine brought with them significant amounts of national currency, which they cannot use.

On April 19, the Council of Europe adopted proposals from the European Commission aimed at solving this problem. EU member states are invited to determine at the national level a mechanism for exchanging cash hryvnia belonging to refugees at the rate of the National Bank of Ukraine, at the rate of 10 hryvnias (310 euros) per person. In this case, the exchange fee should not be charged.

Minister Kaag told Parliament that the Dutch government is working to implement the Council's recommendation. This requires identifying organizations that will buy hryvnia in cash from refugees. The National Bank of the Netherlands (De Nederlandsche Bank) must buy this batch of Ukrainian currency. After that, as soon as the situation allows, change the hryvnia back to the euro at the National Bank of Ukraine in accordance with the agreement concluded between these financial institutions.

According to government estimates, the exchange will require 23.7 million euros. This is based on the assumption that no more than 75 Ukrainian refugees will use the exchange service in the Netherlands. The amount determined by the government includes the costs of the currency exchange itself. It is assumed that the redemption of the hryvnia will continue for three months. It is possible that the deadline will be extended by another three months in the future.

The exchange of the Ukrainian hryvnia will require changes in the budget of the Netherlands. The draft of these changes was sent to both houses of parliament simultaneously with a letter from the Minister of Finance. The government asks the Dutch parliament to take the necessary decisions as soon as possible to make life easier for refugees from Ukraine. Find out morehow the Netherlands helps Ukrainian refugees forced to flee the war.