The NBU is taking measures to resolve a temporary shortage of FX cash in some banks’ vaults that has arisen as ad hoc supply chain disruptions have hindered the delivery of foreign currency cash from abroad.
To remove the hurdles obstructing the meeting of households’ FX cash needs and to ensure the banking system’s uninterrupted operation as the war grinds on, the NBU will make transactions to convert the banks’ cashless foreign currency into FX cash to resupply the banks’ vaults.
The first transaction to exchange FX cash for FX cashless funds will take place tomorrow, 7 September 2022. The NBU will make such transactions for as long as is necessary. The results will be published on the day the transactions are made.
"The current deficit of FX cash in some banks is temporary. The NBU is closely monitoring the situation and has enough FX cash to maintain the banking system’s FX cash liquidity at a level sufficient to meet the needs of the public," said NBU Deputy Governor Yuriy Heletiy.
The NBU also recommends that the banks ramp up their FX cash inflows to prevent a repeat of these difficulties going forward.
Be advised that transactions to exchange the NBU’s FX cash for the banks’ FX cashless funds will in no way affect the volume of Ukraine’s international reserves.
FX cash lodgment transactions are carried out as per the procedure approved by NBU Board Resolution No. 35 On the Conduct by the National Bank of Ukraine of Operations to Reinforce Bank Vaults with Foreign Currency Cash dated 19 March 2020 (as amended).
A bank designated by the NBU as systemically important at the time of an FX cash lodgment transaction can become a participant in such FX cash lodgment transactions. If a bank needs to have its vaults refilled with FX cash from other banks, the NBU recommends that such a bank send a request to systemically important banks.
FX cash lodgment transactions to resupply bank vaults will be made through the Refinitiv trading and information systems that are also used by the banks to carry out transactions in the interbank FX market.
The NBU will meet the banks’ requests in full if the amount of FX cash the NBU has designated for such transactions is sufficient to meet such requests. Should the banks’ requests exceed the designated volume, the exchange will take place on a pro rata basis, meaning that the amount of FX cash received by a bank will be proportionate to the amount it requested.
The frequency of these transactions will depend on the banking system’s FX cash needs.