The National Bank of Ukraine has approved a number of amendments to a procedure for the FX market operation that are aimed at maintaining stability of the FX market, relieving pressure on Ukraine’s international reserves, and preventing unproductive capital outflows.
As of 4 May 2022, the NBU will reduce the limits on banks’ open long and short FX positions from 15% to 5% of their regulatory capital.
Additionally, as of 30 April 2022:
- banks suspend the issuance of new savings certificates denominated in foreign currency Please note that the restriction shall not apply to FX deposits attracted by banks.
- banks are temporarily prohibited from concluding a number of derivative contracts (other than swaps) in the money market, such as:
- contracts on the basis of which the parties to the contract assume obligations to purchase and/or sell foreign currency or investment metals for hryvnias
- contracts based on the exchange rate of the hryvnia against foreign currencies, FX indexes (exchange rates of several currencies) denominated in hryvnias, or the price of investment metals in hryvnias
Furthermore, as of 30 April 2022, the NBU has clarified a procedure for setting the exchange rate of the hryvnia against foreign currencies by issuing banks when performing transactions with electronic means of payment. In particular:
- the hryvnia exchange rate against foreign currencies shall not exceed 10% of the NBU’s official exchange rate (effective on the day of the bank’s transaction) when debiting funds from the client’s account, provided that the interbank transfer in such client’s transaction is performed in foreign currency
- the hryvnia exchange rate against foreign currencies shall equal or exceed the NBU’s official exchange rate (effective on the day of the bank’s transaction)
- if hryvnia funds are debited from the client’s account in foreign currency, provided that the interbank transfer in such client’s transaction is performed in hryvnias
- if funds are credited to the client’s account in the domestic currency, provided that the interbank transfer in such transaction is performed in foreign currency
The amendments noted above were approved by NBU Board Resolution No. 88 On Amendments to NBU Board Resolution No. 18 dated 24 February 2022 dated 29 April 2022. The document is effective 30 April 2022.