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EMTA Recommends Using Official Hryvnia Exchange Rate for Currency Derivative Transactions

19 November 2018

Press Release

 

The Emerging Markets Trade Association (EMTA) has included the official hryvnia exchange rate as calculated by the National Bank of Ukraine (NBU) to the Recommended FX and Currency Derivatives Market Practice on New Template Terms for UAH/USD Non-Deliverable FX and Currency Option Transactions. This is according to the EMTA’s letter to its members as of 12 November 2018.

 

EMTA also informed its members that the changes to the procedure for calculating and publishing the official exchange rate by the NBU have been included in EMTA’s documents and template terms for transactions.

 

In order to avoid confusion, EMTA explained that the official hryvnia exchange rate is the data from the NBU’s official website displayed under Calculation Date in the table ‘Foreign exchange market indicators’.

 

"The fact that EMTA has acknowledged the NBU’s official exchange rate for further use in the market for derivative transactions will help improve the capabilities of foreign investors to hedge the hryvnia exchange risk and, thus, will promote the inflows of foreign capital into Ukraine," Oleg Churiy, Deputy Governor of the NBU, commented on the EMTA’s letter.

 

Please be reminded that the NBU has introduced a new method for calculating the official UAH/USD exchange rate in August 2018. When developing the new method, the NBU took into account the recommendations on calculating the financial indicators by the International Organization of Securities Commissions (IOSCO).

 

From then onward, the NBU calculates the official hryvnia exchange rate on the basis of the information on all USD purchase/sale deals that were executed on tod, tom, and spot terms and, for the convenience of all market participants, publishes them daily before 4 p.m.

 

For reference

 

ЕМТА is an international platform that brings together the investment community to promote the development of the market practices for the Emerging Markets and help them integrate into the global capital markets.


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Last modification   19.11.2018