The National Bank of Ukraine has approved the list of banks eligible to engage in FX interventions in the form of a Request for Quotation in Q2 2018.
According to the banks’ selection criteria, 20 banks will engage in Request for Quotation that had the best general rating among interbank market traders in Q1 2018. The overall composite rating is calculated based on individual rating scores assigned to a bank through the following three transparent criteria:
- the volume of bank’s FX purchases/sales from/to other market players and the NBU (the relative share in the rating included in the calculation of the overall rating is 50%),
- the volume of bank’s cashless FX purchases/sales (the relative share in the rating is 30%); and
- the volume of bank's assets (the relative share in the rating is 20%).
Based on the above-mentioned criteria, the NBU’s list of banks eligible to engage in FX interventions in the form of a Request for Quotation in Q2 2018 was expanded to include INDUSTRIALBANK JSB and CREDOBANK PJSC, while PROCREDIT BANK JSC and BANK FOR INVESTMENTS AND SAVINGS PJSC were expunged.
Thus in April through June the following banks will engage in FX interventions:
ALFA-BANK PJSC
BANK CREDIT DNIPRO PJSC
CB GLOBUS PJSC
ING Bank Ukraine PJSC
INDUSTRIALBANK JSB
CREDIT AGRICOLE BANK PJSC
CREDOBANK PJSC
OTP BANK JSC
Oschadbank JSC
Pivdennyi JSB
CB PRIVATBANK PJSC
FUIB PJSC
Raiffeisen Bank Aval JSC
SBERBANK PJSC
CITIBANK PJSC
TASCOMBANK JSC
UКRGАZBАNК JSB
Ukreximbank JSC
UkrSibbank JSС
UКRSОTSBАNК PJSC
Please be reminded, interventions in the form of Request for Quotation have been conducted since early 2017 and introduced in accordance with the NBU’s Foreign Exchange Market Intervention Strategy for 2016-2020.
In Q1 2018, the NBU purchased a USD 699 million in the interbank FX market through interventions in the form of Request for Quotation. Over this period, the NBU sold USD 333 million in the interbank FX market by the same type of FX interventions.
From 2 April 2018, the revised Regulation On Procedure and Conditions of Foreign Exchange Trade provides for two variants of Request for Quotation. First variant - the way Request for Quotations was conducted previously – by requesting ask/bid prices for foreign currency in trading information systems and executing contracts with the trader offering the best price. Second variant is by selecting the best ask/bid price for foreign currency quoted by market traders in the current trading information systems and executing contracts with traders offering the best price (i.e. in Matching, a platform for concluding contracts in trade information systems).
If in the first case the technical features of other platforms for Request for Quotations enabled the participation of only 20 institutions, in case of interventions by Request for Quotations in Matching all banks using the platform can engage in interventions.