ANNOUNCEMENT 07 Feb 2017
Resolution No. 7 of 7 February 2017 of the Board of the National Bank of Ukraine has relaxed the requirements for the purchase by banks of foreign currency on the interbank market.
NUMBER OF INTERVENTIONS
National Bank of Ukraine
(A document in Ukrainian language)
Постанова Правління Національного банку України від 07 лютого 2017 року № 7 "Про внесення змін до постанови Правління Національного банку України від 13 грудня 2016 року № 410"
This intervention of the National Bank of Ukraine is formulated with regard to a bank' "net FX purchases/position", defined as the difference between currency amount sold and bought.
Previously, the amount of foreign currency and investment metals purchased in national currency, hryvnias, could not exceed the amounts sold by more than 0.1% of the bank’s regulatory capital (USD equivalent).
In the future, banks will be allowed to increase their net FX purchases up to 0.5% of their regulatory capital. This intervention of the National Bank of Ukraine increases banks' flexibility to manage their FX positions, and respectively the important for their activity liquidity. This change permits greater holdings of foreign currency that may facilitate the import and export of goods.
Resolution No. 7 enters into force on 9 February 2017.