Having analyzed the behavior of macroeconomic indicators in January – May 2013, the Board of the National Bank of Ukraine pointed out that the figures suggested a continuation of positive trends in the monetary sphere. In particular, Ukraine experienced a protracted period of low inflation. An improvement in the maturity structure of banks' resource base was accompanied by a decrease in the deposit dollarization level and a reduction in the cost of credit resources.

At the same time, the debt crisis that has hit a number of the world's leading economies is hurting the global demand, dragging down domestic economic growth.

The instability in global commodity and financial markets has prompted the need to minimize the risks related to it. Under these conditions, there remains a clear need to take further measures geared towards de-dollarization of economic relations through deeper differentiation of provisioning requirements while strengthening preferential conditions for provisioning under borrowings in domestic currency.

The above said helps maintain stability of the national currency of Ukraine amid the instability in global markets and a heightened risk of exchange rate fluctuations and an increase in cross-border capital flows.

In view of the above and in accordance with Articles 15 and 25 of the Law of Ukraine "On the National Bank of Ukraine", and in order to ensure a more efficient use of the money market regulation mechanisms pursuant to items 1.8 – 1.12 of Chapter 1 of the Procedure of mandatory provisioning approved by NBU Board Resolution No 91 of 16 March 2006, registered with the Ministry of Justice of Ukraine on 23 March 2006 under No 312/12186, the Board of the National Bank of Ukraine approved Resolution “On Certain Issues related to the Money Market Regulation” No 241 of 20 June 2013, which stipulates the following:

1. The required reserve ratios should be set as follows:

• on legal entities' and individuals' funds attracted to demand deposits in the national currency and funds held in current accounts – 0;
• on legal entities' funds attracted to demand deposits in the foreign currency and funds held in current accounts – 10;
• on individuals' funds attracted to demand deposits in the foreign currency and funds held in current accounts – 15;
• on legal entities' and individuals' funds attracted to time deposits in the national currency – 0;
• on long-term funds and deposits from legal entities and individuals in the foreign currency – 5;
• on short-term funds and deposits from legal entities and individuals in the foreign currency – 10;
• on funds attracted by banks from non-resident banks and non-resident financial institutions in the national currency – 0;
• funds attracted by banks from non-resident banks and non-resident financial institutions in the foreign currency (except for Russian rubles), – 5;
• funds attracted by banks from non-resident banks and non-resident financial institutions in Russian rubles – 0.

2. The Procedure of mandatory provisioning envisages the following:

• 40% of the mandatory reserves formed in the previous provisioning period under report should be held on a separate account with the National Bank of Ukraine 3203 “Funds of required reserves transferred by banks”;
• the remaining amount of the required reserves which the banks maintained according to the applicable norms should be held on a correspondent account with the National Bank of Ukraine.

3. The amount of mandatory reserves which is to be held daily at the beginning of a business day in the correspondent account with the National Bank of Ukraine shall not to be lower than 60% of the mandatory reserves formed in the previous provisioning period under report and held in the bank correspondent account with the National Bank of Ukraine.

4. In paragraph 2 item 4 of NBU Board Resolution “On Certain Issues related to the Money Market Regulation” N 248 of 19 June 2012 numerals “3630” should be excluded.

5. Items 1, 3 and 5 of NBU Board Resolution “On Certain Issues related to the Money Market Regulation” N 248 of 19 June 2012 shall be deemed invalid.

6. The Resolution comes into effect from 1 July 2013.