The National Bank of Ukraine has eased requirements for FX purchase transactions carried out by banks in the interbank market.

Up until now, the amount of foreign currency and investment metals purchased for hryvnias should not exceed the amounts sold by more than 0.1% of the bank’s regulatory capital (USD equivalent). From now on, banks will be allowed to increase net FX purchases up to 0.5% of their  regulatory capital.

This move will broaden opportunities for banks to manage their FX position, enabling market participants to ramp up trading in foreign currency and enhancing the ability of the market to find the equilibrium exchange rate.  This is a very prudent move that will have no adverse consequences for the FX market.

The appropriate amendments to this effect  have been approved by NBU Board Resolution No. 7 of 7 February 2017  On Amendments to NBU Board Resolution No. 410 of 13 December 2016. The resolution shall come into effect from 9 February 2017.