Ukraine and the People's Republic of China have reached an understanding on an agreement to enhance trade relations at the highest level and announced the launch of the earlier signed agreements to set up a currency swap line between the two countries worth 15 billion yuan (the equivalent of USD 2.44 billion).

When on a visit to Davos to take part in the World Economic Forum, Governor of the National Bank of Ukraine Valeriia Gontareva said that the launch of an agreement on hryvnia-yuan swap (a currency swap agreement) between the National Bank of Ukraine and the People's Bank of China would mean the  provision of considerable government support to the private sector when it comes to foreign economic operations in an effort to mitigate exchange rate risk, reduce the demand for foreign exchange from importers, boost investment inflow and stabilize the country's financial market.

According to her, the National Bank of Ukraine currently embarks on the implementation of an agreement to open a currency swap line worth approximately USD 2.4 billion with China, which could be used to finance trade contracts, investment projects and other purposes. “The move will contribute to stabilizing the economic situation, and reducing the demand for foreign exchange from importers. Once the situation is back on track with the support from our foreign donors and partners, we expect hryvnia to appreciate in a mid-term perspective.

As a side note, during the meeting between Ukraine's President Petro Poroshenko and Premier of the State Council of the People's Republic of China Li Keqiang, which took place in Davos, the counterparts agreed to initiate the implementation of earlier signed swap agreements worth 15 billion yuan.