As part of plans to support the foreign exchange market by the regulator, which have been announced by the NBU's senior management team, on October 10, 2014, the National Bank of Ukraine intervened in the foreign exchange market for the second time this week by selling foreign exchange at the single exchange rate. The foreign exchange was sold to banks to enable them to meet clients' demand for foreign exchange. The National Bank of Ukraine sold USD 199.97 million to banks at the exchange rate of 12.95 UAH = 1 USD.

It should be noted that the relevant departments of the National Bank of Ukraine exercise close control over the intended use of foreign exchange purchased by banks from the National Bank of Ukraine. Under the provisions of the foreign exchange legislation, foreign exchange purchased by banks during foreign exchange intervention should be used solely for intended purposes.

For reference: On October 7, 2014, the National Bank of Ukraine adopted a decision to streamline the terms and conditions of foreign exchange interventions in order to allow banks full access to foreign exchange intervention operations. With a view to meeting market demand for foreign exchange to a greater extent, the regulator has provided an opportunity to participate in the interventions even for those banks upon which limits have not been set or limits set are below their demand for foreign exchange. To this end, banks are required to set aside 100% of the funds in the account at the National Bank of Ukraine one day prior to the intervention.