The National Bank of Ukraine is involved in consistent efforts to make its monetary policy toolkit more market-oriented, including by providing banks greater flexibility in managing their own liquidity.

Thus, on May 19, 2014, the National Bank of Ukraine Board passed Resolution No. 287 amending NBU Board Resolution No. 371, dated September 19. 2013, “On Some Issues of the Monetary Market Adjustment”, which envisages that the amount of mandatory reserves of banks which is to be held daily at the beginning of a business day in the correspondent account with the National Bank of Ukraine has been reduced from 50% to 40% of the mandatory reserves built up in the previous provisioning period under report. The resolution comes into force from May 31, 2014.

The move will provide Ukrainian banks with additional liquidity of approximately UAH 4 billion.